Princess Anne's children Zara Tindall and Peter Phillips could face a hefty inheritance bill if they take on their mother's Gatcombe Park estate, a property expert has warned.

The Princess Royal resides at the 700-acre estate with her husband Sir Timothy Laurence, with her two children and grandchildren also living there.

Zara, her husband Mike Tindall, and their three children, Mia, Lena and Lucas live in a seven-bedroom farmhouse, while her brother Peter and his family reside in a private cottage on the Gloucestershire countryside grounds.

Bought by the late Queen Elizabeth in 1976, the property's value is now said to be worth a staggering £6million.

In the documentary Gatcombe Park: A Royal Residence, royal experts suggested that Princess Anne's children could face challenges if they take on the estate in the future.

Sharing his expertise, Terry Fisher of We Buy Any Home said: "If Gatcombe Park is valued at £6million, inheritance tax (IHT) could be substantial.

"In the UK, inheritance tax is currently charged at 40% on estates exceeding the £325,000 threshold, unless exemptions or reliefs apply."

With these figures, the property expert says Zara and Peter could face an eye-watering tax bill of "approximately £2.28 million on inheriting the property", assuming no other reliefs or exemptions are available.

“The payment is typically required within six months of the inheritance, which can create additional pressure on heirs who may not have immediate access to liquid assets," he added.

Terry also believes that while the price tag appears daunting, it is unlikely to deter Zara and Peter from inheriting the estate, given its practically and sentimental value.

“That said, the size of the tax bill could complicate the decision, as the heirs would need to ensure they have sufficient financial resources to cover it," he added.

“This might involve selling other inherited assets, taking out loans, or restructuring their personal finances to meet the tax obligations without needing to sell Gatcombe Park itself."

In a bid to ease the inheritance tax burden, Terry says Princess Anne could explore several strategies to ease the process, such as gifting assets early, setting up a trust and agricultural or business relief.

Should the late Queen's daughter gift the property or portions of her estate to her children at least seven years before her death, the value could be exempt from inheritance tax.

He adds: "Placing the property in a trust may shield it from some tax liabilities, although this comes with complexities and ongoing management costs."

As for the Agricultural or business relief option, this depends on how Gatcombe Park is used.

He explains: "It may qualify for certain reliefs, such as Agricultural Property Relief, which can reduce IHT liability if the land is actively farmed."