Explainer: The British royals and their finances

LONDON – King Charles has become the first British monarch to reveal how much tax he pays, providing the most detailed insight yet into royal finances.

The system of paying for the British monarch and the royal family is complicated, and has been developed over centuries. While the Windsors have said they want it to become more transparent, much still remains private.

The King receives money in a number of ways to fund his official work as head of state, his personal expenditure and to cover the royal duties of his family.

Every year the King receives the ‘Sovereign Grant’, paid by the government to cover the official duties of the monarch and his family, to cover the cost of the upkeep of royal palaces, other residences and historic buildings, and for travel expenses.

It does not provide personal income for the royal family.

The grant is calculated based on a percentage of profits from the Crown Estate, which is made up of massive tracts of land and most of Britain’s sea bed.

Legally, the estate belongs to the Crown but since 1760 the monarch has sacrificed its revenues in return for an annual payment, and it is now an independently run, commercial business.

The Sovereign Grant is currently set at 12 per cent of its profits, which have soared in recent years due to offshore windfarm licences. In 2025/26 it was £132.1 million (S$226 million) and will be £137.9 in the current financial year.

From 2027 to 2032, the grant will be cut to £100 million a year, partly as money will no longer be required for the £369 million refurbishment of Buckingham Palace, and because Crown Estate profits are expected to fall as revenues from offshore wind leases drop.

Since 1399, the reigning monarch has received income from the Duchy of Lancaster, an estate of 16,960ha including commercial properties in the centre of London and other cities. Its net assets in March 2026 were valued at £687.3 million.

The sitting monarch cannot use any proceeds from sales of its land, but does receive the net revenue surplus. In 2025/26, this was £25.2 million.

The money he receives is used to run his private homes and for the incomes of working royals who, while they receive an official residence at no cost in exchange for carrying out duties, are not allowed outside earnings.

Currently, that list includes his sister Princess Anne, his younger brother Prince Edward and his wife, the Duke and Duchess of Gloucester, the Duke of Kent and Princess Alexandra.

Officials say having such private income means the monarch is not subject to any political pressures or outside influence.

Charles’ younger son Prince Harry and his brother Andrew Mountbatten-Windsor, while still members of the royal family, do not receive any public money as neither are working royals who carry out official duties.

The King also has personal undisclosed assets and investments, and receives income from his own large estates, Balmoral Castle in Scotland and Sandringham in eastern England.

The income he receives from these has not been made public.

Created in 1337, the Duchy of Cornwall provides income for the heir to the throne, currently Prince William, and his wife Kate.

The estate comprises 51,861ha, spread across England and Wales, with net assets of £1.2 billion at the end of March 2026.

William receives the net surplus revenue, which in 2025/26 was £21.55 million.

By law, the British monarch is not obliged to pay income, capital gains or inheritance tax.

In 1993 Queen Elizabeth agreed to voluntarily pay income tax at a time when the monarchy’s public standing had suffered after the “annus horribilis” when Charles formally separated from his first wife, the late Princess Diana, Andrew Mountbatten-Windsor split from his wife Sarah Ferguson, and Princess Anne divorced her first husband.

The amount she paid was never disclosed. As heir, Charles had also voluntarily paid an undisclosed amount of tax.

Revealing these amounts for the first time on June 26, royal officials said Charles had paid £12.9 million in 2024/25, £11.7 million in 2023/24, and more than £30 million in total since becoming king. This placed him in the top 100 taxpayers in the UK, they said.

However, no breakdown of the tax calculation was provided.

Likewise, William’s office revealed the prince had paid £7.76 million in 2024/25, and £8.34 million in 2023/24. He had paid more than £20 million in tax since becoming the heir and Prince of Wales. REUTERS