Campaigners urged Wednesday that King Charles should pay inheritance tax on the estate of his late mother.
The Queen consented to pay income and capital gains tax in accordance with laws enacted in 1993, but “sovereign-to-sovereign bequests” are free from inheritance tax.
The estimated value of Her Late Majesty’s personal assets, which included real estate, personal investments, and racehorses, was around £370 million. As a result, the King would be responsible for paying an inheritance tax bill of £148 million, which is typically assessed at 40% beyond a £325,000 threshold.
The fact that common, middle-class families are required to pay inheritance tax on their riches while the King is exempt was seen by some members of the public as a joke yesterday.
Campaigners are calling for King Charles to pay inheritance tax on his late mother’s estate. Under rules signed in 1993, the Queen agreed to pay income and capital gains tax – but ‘sovereign-to-sovereign bequests’ are exempt from inheritance tax
However, others said it was wrong for the Royal Family’s wealth to be whittled away with each generation.
In 2016 the Duke of Westminster, Hugh Grosvenor, inherited £9billion almost tax free because his estate was held in trust.
The Royal Family’s wealth has been estimated to be around £24billion, although this includes property such as Buckingham Palace, which only belongs to the monarch in an official capacity. The Queen’s death has sparked fresh debate about the tax advantages granted to the sovereign’s private wealth. Supporters of the 1993 deal argue it is important the monarch has ‘sufficient private resources’.
The Royal Family’s wealth has been estimated to be around £24billion, although this includes property such as Buckingham Palace, which only belongs to the monarch in an official capacity
But Robert Palmer, from Tax Justice UK, said: ‘I don’t think it’s fair that the King isn’t going to be paying inheritance tax on the private fortune he’s going to inherit from his mother.
‘It’s important to make a distinction between money that is held by the Crown and the sovereign, like Buckingham Palace and Windsor Castle – that is a different question. But the King is also inheriting a big chunk of money in racehorses, property and private investments.’
Richard Murphy, a tax campaigner and professor of accountancy at Sheffield University, said: ‘Why should there be one rule for the monarch and another for everyone else? Shouldn’t a constitutional monarch be our equal before the law?’
There was broad agreement among callers to LBC radio station yesterday. A caller from Liverpool said: ‘I think it’s a joke to say the Royal Family would have very little left after inheritance tax.’