King Charles will not pay taxes on his mother’s inheritance

The private estate of Elizabeth II amounts to 370 million pounds (about 426 million euros), according to the list of Sunday time 2022. These are rough estimates, as the Queen was not required to disclose her private finances. The total, if we add to this amount all the assets associated with the Crown – which did not belong to him personally, but to the institution – could exceed 14 billion (a little more than 16 billion euros). This differentiation is key to understanding how Elizabeth II’s legacy will be distributed.

The new monarch will inherit the Crown Estate, a Crown-owned but independently run property business from which he will receive 15% of the profits. This includes properties such as the major shopping street of Regent Street, London, or Ascot Racecourse. There are also farms, forests and coastlines which make up around 1.4% of English land.

Also in this section is the Duchy of Lancaster. Under this name are grouped an indeterminate number of properties that the British royal family has acquired over the past 700 years. From 18,000 hectares of land to nine castles and various real estate properties. These two real estate networks constitute only a part of the finances of the house of Windsor, which are extremely complex. So much so that the English call it The Firm, the company.

People don’t usually inherit a salary, but the King of England does, who along with the position will also receive the so-called Sovereign Grant, a sum of money that covers travel, security, personnel costs and maintenance of the royal palaces. The Queen received £85.9m from the Sovereign Grant in 2021 (€99.10m).

All these assets will pass in full to the king, without the need to pay taxes. Under British law, inheritances which pass from consort to sovereign (as in the case of Philip of Edinburgh to Elizabeth II) and those which pass from sovereign to sovereign, as in this case, are exempt from payment of 40% of the inheritance tax. inheritance which applies to any inheritance that exceeds 325,000 pounds (nearly 375,000 euros). For Enrique Alpines.

Like Anwar Hussein (Getty Images), Queen Elizabeth II at a banquet in Nepal in 1986.

You can read here more information about the legacy of Isabella II