Charles III and Money: All the King’s Wealth

Status: 09/17/2022 09:53 am

Charles III inherits a considerable fortune from his mother – who is tax-free. Entire duchies, profitable streets, but ruined palaces fall into the hands of the royal family.

Van Thomas Spiekhofen, ARD-Studio London

Operating expenses for the British monarchy are mainly covered by the Crown Estate, the agency that manages the royal estates. These are owned by the monarchy as a company and not by the monarch personally – and make a decent profit.

For example, land and real estate such as the entire overpriced mile of Regent Street in central London, but also offshore wind farms, art collections and shopping centres. The total value of the estate’s assets is estimated at more than £15 billion, equivalent to 17 billion euros.

If you rent on London’s Regent Street, you get an attractive address, but you have to pay accordingly.

Image: dpa

More money for a ruined palace

Typically, 15 percent of crown estate profits go to the monarch, which usually equates to around 50 million euros a year. It funds staff, travel and maintenance of palaces – as well as facilities supported by the monarch. This 15 percent rate was increased to 25 percent in 2017 – which is now almost 100 million euros. A huge temporary surcharge to refurbish Buckingham Palace.

If you believe the British government’s condition report, the palace is now in a state of collapse: buckets are said to already be in some of the 775 rooms to catch drips from the roof. For 60 years, very little has been done for maintenance, and now the craftsmen have to do it, funded by the Crown Estate – about 430 million euros over ten years. The government says the electrical system is out of date and the heating must be removed urgently, as well as the pipes, otherwise there is a serious risk of fire and water.

Profitable duchies

In addition to the Crown Estate, the British Royal Family receives income from two royal duchies that can govern themselves and whose profits flow directly to them: Cornwall and Lancaster. It should be a little more independent from state subsidies.

Based in Cornwall, Charles has built up a very successful organic produce company over the last few decades, selling products in the large British supermarket chain Waitrose, among others, under the “Duchy Organic” label. The company started with oat biscuits in the 1990s, with annual sales of around £1 million.

Everything is now under this brand – from grapes to ice cream and sausages to cotton socks. Last year, pre-tax profits were said to be £23m. However: the duchy now passes to the next in line to the throne, namely his son William.

Of course, they also supply Windsor Castle: the Waitrose department store chain, which sells Charles’ “Duchy Organic” product line.

Image: REUTERS

Obligation to pay tax

In return, Charles inherits the royal duchy of Lancaster from his mother. It made a profit of around £24m last financial year. However, other members of the royal family are also co-sponsored; And this profit is also taxable.

Incidentally, Charles did not have to pay inheritance tax. It goes back to a 1993 agreement with John Major’s government. According to this, the regent or the regent did not have to pay any tax on the inheritance passed from the king to the king.

See also  The dam breaks - and could throw the economy into further chaos

Safety and brand value

However, ultimately what is funded from the exchequer and what is funded from tax money is always a matter of debate. The anti-monarchy organization “The Republic” estimates that the cost of government-sponsored security for civil servants alone is around £345 million.

In response, it is commonly pointed out that the royal family’s sheer presence brings money into the coffers – for example through the many tourists who visit the country, book overnight stays, visit restaurants or buy souvenirs.

In 2017, economic consultancy Brand Finance estimated the monarchy’s contribution to the UK economy at around £1.8 billion a year – and the monarchy’s overall brand value at around £60 billion.

Leave a Reply

Your email address will not be published. Required fields are marked *