Zara Tindall Faces Massive Inheritance Tax Bill on Gatcombe Park Under New Rules

Zara Tindall and her brother Peter Phillips could be hit with a significant inheritance tax bill under new rules announced by Chancellor Rachel Reeves, told GB News. The Gatcombe Park Estate in Gloucestershire, a Grade II-listed property, has served as their mother Princess Anne’s home for nearly 50 years. However, Labour’s recent inheritance tax changes may impact the estate’s future transfer.

Gatcombe Park was bought by Queen Elizabeth II in 1976 as a wedding gift for Princess Anne and her first husband, Captain Mark Phillips. The estate, which once belonged to ex-Conservative Home Secretary Lord Butler, is now valued at around £6 million, nearly double the new inheritance tax threshold, according to the Daily Mail. Under the revised rules, inheritance tax is set at 20% on agricultural assets exceeding £1 million, with the threshold practically extending to approximately £3 million in certain cases. With the estate’s value estimated to exceed this limit, Princess Anne’s children may face substantial tax obligations on the property after her passing.

Unlike Princess Anne’s family, King Charles and Prince William are exempt from paying inheritance tax due to a special ruling established in 1993. The exemption, introduced by then-Prime Minister John Major, ensures inheritance transferred “sovereign to sovereign” avoids tax, sparing King Charles from paying tax when he inherited assets from Queen Elizabeth II. This clause also applies to inheritances from the consort of a former sovereign to a sovereign, as seen when the Queen Mother passed her estate to her daughter in 2002.

Currently, King Charles and Prince William benefit from their duchies—the Duchy of Lancaster and the Duchy of Cornwall, respectively—which are also exempt from corporation tax. Although they voluntarily pay income tax on the duchies’ revenue, the specifics of their tax contributions remain private. They are also exempt from capital gains tax, as neither benefits personally from any increase in the duchies’ assets. Additionally, William will not face inheritance tax when Charles eventually transfers the Duchy of Lancaster.

Gatcombe Park remains a family hub, with both Peter and Zara having homes on the estate. Zara lives with her husband, Mike Tindall, and their three children in Aston Farm, a renovated farmhouse within the estate grounds. Princess Anne, who now shares the residence with her second husband, Sir Timothy Laurence, retained part of the estate after her 1992 divorce from Phillips.

As inheritance tax changes come into effect, the implications for the Tindall and Phillips families are clear: the transfer of Gatcombe Park could come with significant financial responsibilities, further highlighting the unique tax status enjoyed by King Charles and Prince William under existing sovereign inheritance exemptions.