King Charles' £12.9 million tax payment highlighted by transparency report
The Royal Household disclosed that King Charles paid £12.9 million in taxes for 2024-25, but details on how the amount was calculated remain unclear.
King Charles has disclosed a tax payment of £12.9 million for the fiscal year ending March 2025, as part of the Royal Household’s annual financial report. The monarch’s tax obligations are based on a 1993 Memorandum of Understanding with the government, under which he voluntarily pays income tax, capital gains tax and inheritance tax, although he is not legally required to do so.
The report confirms that the King also pays value-added tax, employer taxes and local rates in accordance with standard requirements, but it does not break down how the £12.9 million figure was derived. The Privy Purse, funded primarily by the Duchy of Lancaster, received £25.2 million during the year, yet the report provides no specifics on other personal earnings such as investment income or trading profits.
"If it’s voluntary, it’s not tax," said Dan Neidle, founder of Tax Policy Associates, reflecting a view that the voluntary nature of the payments differentiates them from legally mandated taxes.
"The headline figure is a large sum of tax and there’s also a large sum of income quoted as well, but there’s not any breakdown of how that was arrived at," said Shaun Moore, a tax and financial planning expert at Quilter.
The King’s tax liability applies only to personal income; income used for official duties can be deducted, and the Sovereign Grant, which funds official household expenses, is exempt from tax. Buckingham Palace described the publication of the tax bill as a step toward greater transparency and accountability.