King Charles paid just £4.9 million in voluntary tax on his private income in the 2024-25 financial year, according to the annual royal accounts published on Thursday. The sum, which covers tax on income from the Duchy of Lancaster estate and other private investments, represents a tiny fraction of the monarch's overall wealth, estimated by The Sunday Times Rich List at £610 million.
Royal Finances Under Scrutiny
The accounts reveal that the King's total official expenditure funded by the Sovereign Grant — the taxpayer-funded allowance for royal duties — rose by 12% to £107 million. However, the King's private income from the Duchy of Lancaster, a portfolio of land, property, and financial assets worth £653 million, generated £28.6 million in net profit. On that income, the King voluntarily paid income tax at the standard rate, amounting to £4.9 million, according to a royal spokesman.
In addition, the King paid an estimated £1.2 million in capital gains tax on profits from selling assets, including a 17th-century painting that fetched £11 million at auction. The total tax payment of around £6.1 million is a fraction of the estimated £100 million in tax that would be due if the monarch were subject to inheritance tax on the Duchy of Lancaster, which he inherited tax-free from the late Queen.
Comparison with Previous Years
The King's tax payment is significantly lower than in previous years. In 2023-24, he paid £5.5 million in voluntary income tax on Duchy profits of £27.3 million. The reduction reflects a slight dip in Duchy income and the King's decision to reduce his voluntary tax rate from 40% to 45% in line with the top rate of income tax, though he still pays less than the 45% rate on all his income because some earnings are shielded by allowances.
Anti-monarchy group Republic called the tax arrangement "a joke," arguing that the King should be subject to the same tax rules as everyone else. "The King pays a fraction of what he would owe if he were taxed like any other wealthy individual," said Graham Smith, Republic's chief executive. "The monarchy is a huge drain on public finances, and the King's tax avoidance is an insult to hard-working taxpayers."
Sovereign Grant Increase
The Sovereign Grant, which funds the Queen's official duties, rose by 12% to £107 million in 2024-25, driven by inflation and the cost of maintaining royal palaces. The grant is calculated as a percentage of the profits of the Crown Estate, a portfolio of public assets that generated £1.1 billion in net profit last year. The grant increased from £99 million in 2023-24, with the additional £8 million used for energy efficiency upgrades at Buckingham Palace and other estates.
The accounts also show that the King's official travel costs rose by 15% to £5.2 million, while staff costs increased by 8% to £24 million. The number of full-time royal staff remained stable at around 490.
Criticism and Defence
The publication of the accounts has reignited debate about the monarchy's finances. Critics argue that the King's voluntary tax arrangement lacks transparency and fairness. "The system is opaque and designed to shield the monarch from proper scrutiny," said Smith. "If the King wants to be seen as a modern monarch, he should end the secrecy and pay tax like everyone else."
Buckingham Palace defended the arrangements, stating that the King pays tax voluntarily and at the highest marginal rate on his private income. A palace spokesperson said: "The King is committed to transparency and has voluntarily paid tax on his private income since 1993. He pays income tax at the highest marginal rate, and his tax affairs are conducted in accordance with HMRC rules."
The King's tax payment comes as the monarchy faces increased scrutiny over its wealth and public funding. A recent poll by YouGov found that 55% of Britons believe the monarchy provides good value for money, down from 62% in 2022.
