Rachel Reeves’ changes to Inheritance Tax rules could have a huge impact on Princess Anne and her children – Zara Tindall and Peter Phillips.
The Princess Royal is the owner of Gatcombe Park in Stroud, Gloucestershire.
The 730-acre site is a Grade II listed building and has been the home of Princess Anne for five years.
It was first purchased by the late Queen Elizabeth II in 1976 as a wedding present for Captain Mark Phillips, Anne’s first husband.
The property was sold to the royals for £6million having been previously owned by former Conservative Home Secretary Lord Butler.
Chancellor Reeves unveiled plans in her Budget that will see Inheritance Tax charged at 20% on agricultural assets above £1million.
However, in some circumstances, the threshold will be set at £3million.
The move sparked anger amongst farmers who say they will now not be able to pass their farms onto their families because of the inheritance tax costs.
Gatcombe House is valued at at least double the £3million threshold, meaning Anne’s two children could face a hefty bill if they inherit the property.
King Charles III and Prince William are exempt from inheritance tax because assets passed ‘sovereign to sovereign’ do not incur any duties.
When Annie and Captain Phillips divorced in 1992, Gatcombe Park was divided equally between them.
Peter has a house on the site, while Zara also has a home there on Aston Farm. Anne lives in the main house, first built in 1774.
The main house has five bedrooms, four secondary bedrooms, four reception rooms, a library, a billiard room, and a conservatory. There is also a trout lake and a large stables.
Princess Anne told the BBC in 2014: “It’s really nice to come back and just be yourself in an area like this.
“Being able to take on a place like this -for me, I’ve got to make it work. This is not something that comes free, this has got to pay its way, otherwise I can’t stay here.”