Royal tax: Which Royals pay tax each year - It's not who you think
ROYAL life comes with many benefits, but there are also strict commandments dictating one's behaviour and habits.
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The Royal Family do not work in the same manner as normal Britons. Instead, they undertake work on behalf of the Royal Family and are funded by the Sovereign Grant which is created from public funds. But when it comes to paying tax, which royal has the largest tax bill?
The Queen and the Royal Family are funded through the Sovereign Grant.
This single, consolidated annual grant is designed to be a more permanent solution than the Civil List which was used before April 2012.
Funding for the Sovereign Grant comes from a percentage of the profits made from the Crown Estate revenue, which is initially set at 15 percent.
The Sovereign Grant will be reviewed every five years by the Royal Trustees, which includes Prime Minister Boris Johnson, the Chancellor of the Exchequer Rishi Sunak and the Keeper of the Privy Purse Sir Michael Stevens.
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Each year the Royal Household publishes a summary of Head of State expenditure together with a full report on the Royal public finances.
It was announced in November 2019 that the Sovereign Grant for 2020/2021 will be £85.9m.
This is 25 percent of The Crown Estate’s revenue surplus in 2018/2019 which was £343.5m.
The Sovereign Grant for 2019/2020 is £82.4m which is 25 percent of £329.4m.
Does the Queen pay tax?
Yes, the Queen does pay tax.
In 1992, the Queen volunteered to pay income tax and capital gains tax, and since 1993 her personal income has been taxable as for any other taxpayer.
The Queen has always been subject to Value Added Tax and pays local rates on a voluntary basis.
The Queen is not obligated to pay tax due to the Crown’s tax-exempt status, which means certain acts of parliament do not apply to royals in the same way as commoners.
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The Queen pays council tax on all four of her properties.
She pays thousands on council tax each year for Buckingham Palace, Windsor Castle, Sandringham Estate and Balmoral Castle.
Buckingham Palace costs a total of £1,560.56 each year as it falls into valuation band H.
Windsor Castle also commands a hefty sum in council levy meaning the Queen forks out £2,300 for the property annually.
Balmoral Castle in Aberdeenshire commands £3,186.98 in council tax as the property is again listed in Valuation Band H along with the rest of her properties.
Sandringham estate in Norfolk sees the Queen pay £2,724.48 in council tax.
This means her council tax payments to a collected £9,772.02 annually.
Prince Charles also voluntarily pays income and capital gains tax.
However, his expansive Duchy estate in Cornwall is not subject to corporation or capital gains taxes.
Instead, the official website said funds are reinvested in the estate instead.
Originally the Duchy estate was created to provide an income for heirs to the throne which is why it is exempt from tax.
In 2012, he voluntarily paid £5m tax on his £18m income, which Clarence House said was at the full 50 percent rate after deductions from expenses.