When he ascends the British throne as Charles III, Elizabeth II’s eldest son will also inherit his mother’s personal fortune, which is estimated to be worth around €425 million.
However, unlike what happens to his subjects, he does not have to hand over a portion of that amount to the tax authorities.
Lines of inheritance
In the UK, inheritances worth £325,000 or more are subject to 40% inheritance tax.
However, thanks to rules passed in 1993, Charles III is exempt. Under this resolution, property passed from a sovereign or a sovereign’s wife to the next monarch is exempt from inheritance tax.
According to France Presse, other definitions set out in a 2013 government memorandum of understanding ensure that the monarch has her own personal money and, therefore, her financial independence from the state.
Values are not required to be published by law, but a list of the richest Britons published by the Sunday Times newspaper in May this year (Sunday Times Rich List 2022) put the Queen’s net worth at around £370 million (BRL 2.209 billion). This amount is £5m more than projected for 2021.
Much of this wealth would go to Charles without the British government receiving a single pound. He has personal assets worth around 100 million US dollars.
Cora’s Treasure
As King, he would also receive an annual Sovereign Grant from the UK Treasury, set at 15% of the Crown Exchequer’s profits, administered by the government through a treaty dating back to 1760.
The grant covers the official engagements of the King and other first-class members of the royal family, the salaries of officials and the maintenance of royal palaces.
The Crown Treasury’s holdings include commercial properties, real estate in prime central London locations, rural and coastal land across the country and waters around England and Wales.
According to AFP, it has one of Europe’s largest real estate empires, with major business interests in areas such as the development of wind energy production.
In the financial year to March 2022, the Crown Treasury posted a net profit of £312.7 million (R$1.862 billion), compared to £269.3 million in the previous financial year.
The great wealth of the English monarchs was the property held by the monarchy as an institution. That is, Crown lands, royal collections of art and jewellery, official residences and royal archives.
The Crown Jewels, valued at at least 3 billion pounds sterling (R$17.91 billion), symbolically belong only to the monarch and are automatically passed on to his heir.
As king, Charles inherits the Duchy of Lancaster, a private estate of commercial, agricultural and residential properties that has been held by royalty since the Middle Ages. He has the right to use his income, which mostly goes to official expenses. In the 2021/2022 financial year, the Duchy of Lancaster had a net surplus of £24 million.
On the other hand, once he ascends the throne, Charles III will lose the Duchy of Cornwall, another private property, which last year generated a profit of 23 million pounds (R$ 137.32 million). It now goes to William, eldest son and first in line of succession.
Source: CNN
