Prince William has contributed up to £7 million each year in income tax, placing the heir to the throne among Britain's highest taxpayers, according to a new report. The Prince of Wales's hefty tax bill puts him in the top 0.002 per cent of taxpayers in the UK.
Source of Income
The majority of William's income comes from the £20 million annual profit he receives from the Duchy of Cornwall, a private land estate worth approximately £1.1 billion. This estate has been inherited by every heir to the throne since the 14th century.
Voluntary Tax Payments
According to the Sunday Times report, William voluntarily pays the highest marginal rate of 45 per cent on his personal earnings. He faces no legal obligation to do so after his grandmother, Queen Elizabeth II, struck an agreement with the Treasury in 2013.
William is following the lead of his father, King Charles, who voluntarily declared an income tax payment of £5.9 million on the £23 million he received from the Duchy during the 2021-22 financial year as Prince of Wales.
Tax Deductions and Expenses
The publication added that William is allowed to deduct official expenditure from his Duchy income before calculating his tax bill. The specific expenses he files as tax deductions have not been publicly declared.
Duchy of Cornwall Background
The Duchy of Cornwall traces its origins to 1337, when King Edward III established the estate to provide funds for his son and heir. Today, the portfolio encompasses between 2,000 and 3,000 properties across 23 counties in England and Wales, covering roughly 130,000 to 140,000 acres.
During the 2023-24 financial year, William's first year overseeing the estate after King Charles's accession, the Duchy delivered a record surplus of £23.6 million. Approximately £13.5 million is believed to be subject to taxation, producing an estimated tax liability between £5 million and £7 million.
Transparency Concerns
Questions surrounding the transparency of royal finances have grown louder following revelations about the Duchy's dealings with public institutions. Investigations uncovered that both the Cornwall and Lancaster estates have generated millions by levying charges on the army, navy, NHS, and schools for access to their land, rivers, and coastal waters.
These arrangements, while lawful, have sparked debate about whether taxpayer-funded bodies should be directing money towards a private royal estate. A Kensington Palace spokesman said: "The Prince of Wales pays the top rate of income and capital gains tax on all his personal income, including receipts from the Duchy."
