NewslettersSign inAPP
spainSPAINargentinaARGENTINAchileCHILEcolombiaCOLOMBIAusaUSAmexicoMEXICOperuPERUlatin usaLATIN USAamericaAMERICA

WORLD NEWS

Will King Charles have to pay inheritance tax on the Queen’s private estate valued at over $750 million?

The new king will not have to pay tax on his huge inheritance due to a change in UK law meaning royals pay no inheritance tax.

Update:
King Charles III leaves St Giles' Cathedral, Edinburgh, after taking part in a vigil as Queen Elizabeth II's coffin lies at rest. Picture date: Monday September 12, 2022. (Photo by Jacob King/PA Images via Getty Images)
Jacob King - PA ImagesGetty

King Charles has been gifted the Duchy of Lancaster in his inheritance from his mother, Elizabeth II. While he gives up the $1 billion (£855 million) Duchy of Cornwall to his son William, the Duchy of Lancaster provides and ample swap worth more than $750 million (£641 million). Better yet, this will come at no cost to him due to a tweak in royal inheritance law.

The 1993 change prevents a depletion of royal funds in the case of royal deaths in quick succession. It was first utilised in 2002 when the Queen Mother bequeathed her $100 million (£80 million) estate.

Usually britons pay 40 percent of an inheritance larger than $377,000 (£325,000) back as tax to the government.

The queen voluntarily began to pay income and capital gains tax in 1993, though Charles is under no obligation to do the same. However, with the ongoing cost of living crisis it would be hoped by many in the UK that the new king would contribute towards his subjects.

The queen was the largest landowner in the UK, holding around 6.6 billion acres of land worldwide.

What is the Duchy of Lancaster?

Formed back in the 1200s, the Duchy of Lancaster is one of the oldest royal portfolios. It includes a number of financial and property investments including tens of thousands of hectares of land in England and Wales.

One of its largest portfolios includes assets in London like the Savoy hotel.

It is one of a number of estates Charles has access to for funds.

Rules

To be able to comment you must be registered and logged in. Forgot password?