King’s tax bill rises to £12.9 million
Key Points
- King paid £12.9 million in voluntary tax for 2024-25
- Up from £11.7 million the previous year
- Total since 2022 accession exceeds £30 million
- Monarch not legally liable but pays voluntarily since 1993
- 2025-26 figure not yet available pending audit
King Charles III paid £12.9 million in voluntary tax for the 2024-25 financial year, up from £11.7 million the previous year, according to the Royal Household’s Report on Royal Finances published on Thursday (25 June).
The figure brings the total tax paid by the King since his accession to the throne in 2022 to more than £30 million.
The Royal Household said the tax payable for 2025-26 was not yet available, as the underlying figures remain subject to audit and review in line with normal reporting timetables. The King’s tax payments are reviewed by independent tax accountants.
The Monarch is not legally liable to pay income tax, capital gains tax or inheritance tax, because the relevant legislation does not apply to the Crown.
Since 1993, under an arrangement announced by then Prime Minister John Major and subsequently formalised with HM Treasury, the Monarch has voluntarily paid tax. The basis for the payments is set out in HM Treasury’s Memorandum of Understanding on Royal Taxation.
Income tax is paid on Privy Purse income to the extent that it is not used for official purposes, as well as on other private sources such as investment income and trading profits.
No account is taken of the Sovereign Grant, which is provided by Parliament to support the King’s official duties, nor of the cost of facilities and services borne by government departments.
Capital gains tax is paid on chargeable gains arising from the disposal of Privy Purse and other private assets.
No account is taken of gains or losses from the disposal of Duchy of Lancaster assets, as the Monarch is not entitled to the capital gains of the Duchy. Inheritance tax is not paid on private assets passing from one Sovereign to the next, but is payable on gifts and bequests to anyone else.
The Royal Household said the reasons for not taxing assets passing to the next Sovereign include that private estates such as Sandringham and Balmoral have official as well as private use, and that the institution requires sufficient private resources and a degree of financial independence from the government of the day.
The Monarch’s private income derives from the Duchy of Lancaster, his personal investment portfolio and his estates. For the financial year ended 31 March 2026, the Duchy of Lancaster recorded an adjusted net surplus of £25.2 million, distributed to the Privy Purse.
The report notes that the King’s investment portfolio is managed on a fully discretionary basis, with individual decisions made by managers under their mandate and no further input from the Monarch.
