King Charles to publish his full tax payment in historic first for the monarchy
King Charles is set to become the first monarch to publish his full tax payment in a bid to ‘modernise and evolve’ the Royal Family – including profits generated by his estates and savings
King Charles will become the first British monarch to publish his tax payment(Image: Jonathan Brady/PA Wire)
The King is to publish his full tax payment in an historic first for the monarchy.
Charles will reveal the total amount of tax he pays, including income received from personal wealth, investments and certain Capital Gains tax, becoming the first British monarch to do so.
Buckingham Palace said the unprecedented move was to demonstrate that the monarchy would continue to “modernise and evolve” under the King’s reign.
The King has previously published his own tax information when he was Prince of Wales and in charge of the Duchy of Cornwall.
Charles previously published his tax details when he was Prince of Wales (Image: Anadolu via Getty Images)
When he ascended the throne and Prince William inherited the Duchy, he controversially rowed back on the practice.
The King’s decision to publish his tax affairs as monarch is likely to heap pressure on the Prince of Wales to follow suit.
A spokesman for the King said Charles’ personal decision to publish his financial affairs was in line with Buckingham Palace’s wish to increase “clarity and accessibility” around the monarchy’s finances by producing a new report on the subject.
The full amount of tax paid by the King, including money received by the Duchy of Lancaster, money from investments or trading profits and funds generated by his estates and savings.
It will include profits generated by the King’s estates and savings(Image: Getty Images)
The Duchy of Lancaster estate, a private portfolio of land, investments and office, retail and industrial properties, provides the King with an annual income.
In 2024/2025, it stood at £26.8 million.
The King’s total personal tax information for the 2024-25 financial year will be published, alongside other reports on royal finances.
His 2025-26 tax details will be released next year when their audit has been completed.
However, it will be revealed in one lump sum and not broken down into individual financial contributions.
The move will increase pressure on the Prince of Wales to publish details of his own finances(Image: Getty Images)
A Buckingham Palace spokesperson said: “The decision to do so as Sovereign has come at the express wish of the King himself, as part of the adaptations carried across since accession.”
Prince William meanwhile has chosen to withhold more information about his finances, as the Prince of Wales, than his father did before him.
When William became Prince of Wales following Charles’ accession to the throne, he also inherited the Duchy of Cornwall.
As the 25th Duke of Cornwall, future king William still pays income tax in the same way as the Chales did, but controvertially decided not to reveal the amount paid as he was not obliged to do so.
Journalist David Dimbleby labelled the Prince of Wales as “secretive” over his decision not to follow in his father’s footsteps by publishing his tax returns.
In his BBC series – What is the Monarchy For? – the long-term royal broadcaster charted how the incomes from the Duchy of Cornwall and Duchy of Lancaster have risen over the decades, currently providing King Charles and Prince William with a joint income of £50million.
But claiming they pay very little tax on that income in the programme, he notes: “The royals have a lifestyle to match the richest plutocrats, and their wealth is only set to rise. At the moment, William seems to be a bit secretive about his wealth. Unlike his father, he’s refusing to publish his tax returns.”
William receives an income from the Duchy of Cornwall, a billion-pound hereditary estate featuring The Oval cricket ground and Dartmoor Prison, providing the heir to the throne with funds independent of the monarch.
David Dimbleby had labelled William ‘secretive’ in a recent BBC documentary(Image: PA)
William, 44, received nearly £23 million last financial year from the Duchy and voluntarily pays the highest rate of income tax after official costs are deducted, but the amount he pays in tax is not disclosed.
It was reported recently he is to invest £500 million from selling off a fifth of his duchy estate and other transactions to have a “positive impact on the world ”.
Norman Baker, former Privy Counsellor and author of Royal Mint, National Debt, said the King’s decision was “a welcome small step” in the monarchy being transparent about its finances.
He added: “It appears to be a continuation of Charles’s own practice.
“He declared how much tax he was paying when he was Prince of Wales, so this places the spotlight on Prince William.
“He needs to explain why, when he became Prince of Wales, he discontinued that practice, and purposely chose not to declare how much tax he was paying.
“As a future heir, it certainly puts pressure on him to do a U-turn on that controversial decision.”
The new report, which will be made available next week online, will be published to explain “fully, fairly and factually in one place how royal finances operate”, royal sources said.
The Palace added: “Our aim is to explain all elements of Royal finances in a way that further enhances clarity and accessibility, while also placing it in its historical and constitutional context.”
For centuries, the government has provided financial support to the monarch.
Since 2012/13, this has been known as the Sovereign Grant, as provided for under the Sovereign Grant Act 2011.
This was introduced to consolidate different sources of financial support, including the long-standing Civil List, while improving accountability of spending on the Monarch’s “official duties”.
The Grant includes funding for the maintenance of royal residences known as the Occupied Royal Palaces, which are used for formal entertaining and ceremonial events.
It also includes expenses for royal travel for official engagements in the UK and overseas undertaken by the King and other members of the Royal Family.
Employment costs for Royal Household staff who support the work of the King as head of state are also included.
The finances will be revealed in the Sovereign Grant report next week, which details the amount of money the royal family receives as a percentage of profits from the Crown Estate given back to the monarchy.
Figures from last year showed the Sovereign Grant stood at £86.3 million, comprising £51.8 million for core elements like travel and payroll costs and £34.5 million to fund the Buckingham Palace renovation programme.
King Charles voluntarily pays the top UK income tax rate (45%) on the income he receives from the Duchy of Lancaster.
In the 2023-2024 financial year, this income was approximately £27.4 million
Buckingham Palace added: “The annual Sovereign Grant Report contains extensive detail of publicly-funded expenditure and other core operational data relating to Royal finances.
“It is subject to Government oversight and scrutiny by Parliament, the media and the public.
“In order constantly to improve, and to encourage wider understanding of our accountability, the Royal Household has been considering options to enhance this transparency still further – and can today announce additional measures in keeping with our public service priorities.
“To put it simply: we continue to modernise and evolve.”
