Under the terms adopted nearly 30 years ago, the new British monarch Charles III would not have to pay inheritance tax after the death of his mother, Queen Elizabeth II. Some British media got interested in the issue.
While the British monarch is not legally obliged to pay any taxes in the United Kingdom, it is the Queen Elizabeth II voluntarily undertook in 1993 to pay tax on income and capital gains – reminds the Sky News television portal.
According to the principle introduced 30 years ago by the British government under the leadership of Conservative Prime Minister John Major, the monarch is not required to pay inheritance tax when property is transferred from one ruler to another. In accordance with British law, after exceeding a certain threshold of the value of the inherited property, the inheritance tax is 40 percent.
The major argued that the tax would pose a threat to the assets of the monarchy, which would systematically shrink over several generations using the “salami method”. I believe this is necessary to protect the independence of the monarchy; I would not like to diminish it in any way said Major, quoted by Sky News.
In the early 1990s, the royal court came under pressure related to its maintenance costs, including in terms of who is to pay for the renovation of Windsor Castle after the great fire in 1992 – reminds the daily “The Guardian”.
The problem of the monarch’s tax burden returned after the death of Elizabeth II, who died on September 8 at the age of 96.
It is important to distinguish between assets belonging to the crown and those of the monarch, such as Buckingham Palace or Windsor Castle – this is a separate issue. But the king also inherits much of his fortune in the form of racehorses, real estate and private investments Robert Palmer of Tax Justice UK, which promotes the idea of a fair tax system, told the Daily Mail.
As calculated last year by Forbes magazine, the wealth of the British monarch is estimated at $ 28 billion, which includes the Crown Estate (19.5 billion), Buckingham Palace (4.9 billion), the Duchy of Cornwall (1.3 billion), the Duchy of Lancaster (748 million), Kensington Palace (630 million) and the Crown Estate in Scotland ( 592 million). For example, the annual income of the Duchy of Lancaster, the private estate of the British monarch in the north-west of England, which was, among other things, inherited by Charles III, was around $ 25 million in 2021.