London: After the death of his mother, Queen Elizabeth II, King Charles will inherit not only the throne, but also her personal property without paying inheritance tax.
British monarchs are not required to reveal their private finances, but according to the Sunday Times Rich List 2022, the Queen is worth around £370m ($426m), £5m more than the year before. Increased.
Most of the deceased sovereign’s personal property will pass unharmed to Charles without the British government getting a share.
The real estate of the royal family—the royal estates, the royal art and jewelery collection, the official residence, the Royal Archives—is held by the monarchy as an institution.
As such, they are only given to trusted Charles.
Likewise, the Crown Jewels, estimated to be worth at least £3 billion, belong to the Queen only symbolically and are automatically transferred to her heirs.
The Queen’s private fortune adds to Charles’ private fortune, which is estimated at around $100 million according to CelebrityNetWorth.com.
In contrast, Elizabeth’s late husband, Prince Philip, left a more modest fortune worth £10 million, including an art collection of around 3,000 pieces.
A court in 2021 ordered that his will be sealed for 90 years.
As king, Charles inherits the Duchy of Lancaster. The Principality of Lancaster is a private estate of commercial, agricultural and residential property owned by royalty since the Middle Ages.
The monarch has the right to use that income, mainly for public spending. We achieved a net profit of £24m in the 2021-22 financial year.
Meanwhile, Charles loses another private estate, the Duchy of Cornwall, in southwest England. From 2021 to 2022 he delivered a profit surplus of around £23m.
Created in 1337 by Edward III for his son and heir, Prince Edward, the duchy is passed to Prince William, the eldest son of Charles, who is now the heir to the throne.
subsidies and benefits
Prince Charles also receives an annual sovereign grant from the British Treasury, set at 15% of the profits from the royal estate, in which the monarch surrenders to the government under a deal dating back to 1760.
The sovereign grant covers the costs of the official duties of the monarch and other senior members of the royal family, and pays for staff salaries and maintenance of the royal palace.
For 2021-2022, it was set at £86.3m (equivalent to £1.29 per person in the UK) and included funding for the renovation of Buckingham Palace.
Crown Estate’s portfolio includes commercial and retail properties, including prime locations in central London, rural and coastal properties across the country, and waters around England and Wales.
This makes it one of Europe’s largest real estate empires, with significant commercial interest in areas such as the development of offshore wind farms.
For the financial year to March 2022, it posted a net profit of £312.7m, up from £269.3m in 2020-21.
UK inheritance tax is levied at 40% on property over the £325,000 threshold.
However, the new king will not pay inheritance tax on personal property inherited from his mother, according to a rule drawn up in 1993.
Assets passed from one sovereign or a sovereign’s spouse to the next are exempt.
Rules were created to avoid wiping out the royal family’s private property if a series of monarchs died in quick succession and their fortunes were reduced by 40% each time.
The rules set out in a 2013 government memorandum ensure that monarchs have their own personal finances and also guarantee economic independence from the state.