Buckingham Palace has announced that King Charles III has made a public tax return in a bid to boost transparency and accountability in a move described as "unprecedented" in the history of the British monarchy because British law exempts the monarch from paying income tax, capital gains or inheritance.
The British newspaper The Independent reported that King Charles chose to voluntarily commit to paying them based on a memorandum of understanding signed with the government in 2023, in a precedent that reflects a new royal trend towards financial disclosure, pointing out that the next few years will witness the publication of the details of the king's personal taxes for the fiscal year 2024-2025 within a package of financial reports of the Royal Institution, provided that the data for the next fiscal year will be published after the completion of audits and audits.
According to the newspaper, which published a detailed report on the upcoming royal declarations , Charles voluntarily pays income tax on all of his own profits, along with capital gains tax on assets to which these obligations apply.
The king's sources of income include returns on investments and business profits, as well as income from his private properties in Balmoral and Sandringham, private mansions and residences of the royal family, as well as his other personal savings.
King's income: £26.8 million per year
The monarch receives an annual income from the Duchy of Lancaster, a private real estate and investment portfolio that provides the monarch with independent income. The duchy's revenue during the 2024-2025 financial year was about £26.8 million.
In return, heir to the throne Prince William gets his income from the Duchy of Cornwall, a real estate empire valued at more than £1 billion and home to high-profile assets including The Oval Cricket Ground and Dartmoor Prison.
The financial data showed that Prince William received about £23 million from the duchy during the last financial year, and voluntarily pays the highest tranche of income tax after deducting official expenses, but the amount of taxes he pays is not made public to the public.
Britain's crown prince invests 500 million pounds
Recent reports have revealed plans for the prince to invest around £500 million in the proceeds from the sale of part of the duchy's assets and other deals, as part of projects he says aim to make a "positive impact on the world".
Coinciding with the publication of the King's tax statements, the palace is expected to release the accounts of the "sovereign grant" funding for the official activities of the royal family, which amounted to £86.3 million last year, of which £51.8 million was allocated for basic operating expenses, including salaries and travel, and £34.5 million was directed towards the refurbishment of Buckingham Palace.
Charles' decision is seen as part of efforts to modernize the royal institution and promote public accountability, amid growing demands for greater transparency about the royal family's assets and sources of income.
The monarch's money is not his own income, but is spent on royal duties, palace management, staff expenses and other liabilities. The main expenses include: salaries for staff at the royal palaces, organising official receptions, royal ceremonies, trips and visits inside and outside Britain, maintaining officially used royal palaces, and funding the restoration of Buckingham Palace, which has been going on for years.
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