And also inherited the throne from his mother King Charles also in line to get a lot of her private wealth.
Upstairs of official crown propertyQueen Elizabeth has accumulated dozens of millions of pounds in her own cash as well as assets – a lot of of it’s from art and racehorses.
Most people pay 40 percent inheritance tax on everything they inherit over £325,000 threshold – that is, the monarchy will be on hook for millions and the treasury will in for surprise.
Still King Charles is not responsible for pennies due to a deal made between the Crown and John Major government in 1993, effectively freeing the monarch in situations like this is.
How much did Charles inherit from the queen?
In 2011 Sunday Times Rich Leaf calculated that the queen private the fortune was 370 million pounds.
But exact nature of what Charles gets is not public because the wills of monarchs are sealed for decades after their death.
new The king is definitely at least in line to take over own of queens private estate, duchy of Lancaster.
This property is valued at more than £650 million as of March 2022, will pay him income of about £24 million, like his mother. Plays similar role to the one, that of duchy of Cornwall he enjoyed as a prince of Wales and will pass on to his son.
What is this tax deal with in government?
Deal confirming release of monarchy from inheritance tax was never written into law, but was part of of a more informal “memorandum of understanding” between government and a palace. His official title “Memorandum of Understanding on Royal Taxation”.
It makes for a fascinating read. for anyone interested in tax affairs of monarchy.
Section of inheritance of memorandum begins noting that some royal assets belong to the Queen as “as the Sovereign and not as private personality” and that “it would be manifestly inappropriate for inheritance tax payable in respect of such assets”.
Resources of this type includes official residences such as Buckingham Palace, Royal Archives, Royal Collection of paintings and other works of art.
In fact, they are not the personal belongings of the king or queen. property but this of Crown and thus are not subject to inheritance tax.
But what about private property and wealth?
next paragraph of memorandum also releases the monarch private property from inheritance tax when it is transferred down as a legacy next sovereign.
it says: “In connection with assets which can rightly be regarded as private, the agreements provide that inheritance tax will not be paid on gifts or wills from one Sovereign next will be paid on gifts and wills anyone more.”
This means that anything Charles inherits from Queen Elizabeth is not subject to inheritance tax.
Memorandum also says that “the tax will also not payable on assets transition to sovereign on in death of spouse of a former Sovereign” is an exception that would apply to Prince Philip. assets.
What an excuse for this is?
The document gives two justifications: firstThis says what nature of monarch role it means it’s important for have enough private Resources”. Secondly, it is noted that some of monarch private assets are also used for official functions.
As the memorandum states: “The reasons for not taxed assets transition to next sovereign it private assets such as Sandringham and Balmoral official as well as private useand that the monarchy as an institution needs sufficient private resources to enable him to continue perform this is traditional role in national life and have a degree of financial independence from government of day.”
it should note that so far only a few of monarch assets have “official same as private uses, all of they are exempt from inheritance tax – be it a Sandringham house or a racehorse.
However, the memorandum says what ” government believes that the agreements set out in attached memorandum of understanding is fair and appropriate, taking into account where necessary of in unique circumstances of monarchy”.
Is the queen legally required to pay taxes at all?
Wider context of memorandum on inheritance tax is that the monarchy is not legally required pay income tax, capital gains tax or inheritance tax in general – because the relevant acts of parliament don’t treat them.
However, the sovereign pays tax on profits and capital gains. on “voluntary basis” and inheritance tax on base described. in memorandum, ground that did not include the monarch dying and transfer your wealth next monarch.