The British Royal Family and British Tax

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How Much UK Tax is used to Fund the British Monarchy?.

The answer is actually none, when we look at how much the British Monarchy, and its Crown Estate, pays directly to the UK Treasury.


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The Crown Estate, (owned by the Sovereign in right of the Crown), contributes about £250 million per year to the UK treasury, after the costs of the Monarchy have been taken into account.

The costs of the Monarchy are covered in the Sovereign Grant. This is the figure that many people say is what the Taxpayer pays to cover the cost of the British Monarchy.

What is the Sovereign Grant?

The Sovereign Grant is an annual payment to the monarch to fund the Monarch’s official duties.

The Royal Family’s Core Sovereign Grant is based on 15% of the net surplus of The Crown Estate.

The Sovereign Grant has been worked out at about the equivalent of 65 pence per year, per person in the UK. Pretty cheap, even if was paid by the taxpayer. But it isn’t paid by the taxpayer, it comes from the Profits of the Crown Estate.


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www.royal.uk/financial-reports-2018-19

Income from the Crown Estate to the UK taxpayer each year

    • 2018/19 – £257.6 million being retained by the Treasury. (£343.5 million total profit with the Royal Family keeping £51.5 million, plus an extra £34.4 million set aside for Buckingham Palace Renovations (Total £85.9 million)
    • 2017/18 – £247.1 million being retained by the Treasury. (£329.4 million total profit with the Royal Family keeping £49.4 million, plus an extra £32.9 million set aside for Buckingham Palace Renovations (Total £82.4 million)
    • 2016/17 – £246.6 million being retained by the Treasury. (£328.8 million total profit with the Royal Family keeping £49.3 million, plus an extra £32.9 million set aside for Buckingham Palace Renovations (Total £82.2 million)
    • 2015/16 – £258.5 million being retained by the Treasury. (£304.1 million total profit with the Royal Family keeping £45.6 million)
    • 2014/15 – £242.3 million being retained by the Treasury. (£285.1 million total profit with the Royal Family keeping £42.8 million).
    • 2013/14 – £227.0 million being retained by the Treasury. (£267.1 million total profit with the Royal Family keeping £40.1 million).
    • 2012/13 – £214.7 million being retained by the Treasury. (£252.6 million total profit with the Royal Family keeping £37.9 million).

The amount paid to the Royal Family (the Sovereign Grant) will actually be paid 2 years after the year in question. Therefore, the amount of £45.6 million, for the 2015/16 year, will be paid to cover the Royal Family Expenses in 2017/18.

Who Owns the Crown Estate?

The Crown Estate, whose creation dates back to 1760 when George III handed over the management of the country’s lands and coastal waters to Parliament, is owned by the Sovereign in right of the Crown.

What is the Crown Estate?

The Crown Estate is a £14.3 billion UK real estate business (From the 2019 Annual Report).
Although the ownership of some property can be traced back to Edward the Confessor, the estate as a whole essentially dates from 1066.
It is important to note that government land, known as Crown Property, has nothing to do with The Crown Estate.
thecrownestate.co.uk

What Happens to Crown Estate Profits?

85% of Crown Estate income is retained by the Government (effectively tax) with 15% going to the Royal Family.

Does the Royal Family Pay Tax

The Queen has voluntarily paid income and capital gains tax since 1992 on her private income and other revenues not used to finance her official work.
Prince Charles has also voluntarily paid income tax on his income from the Duchy of Cornwall, since 1993.

What Does The Royal Family Do?

A statement by the Keeper of the Privy Purse, Sir Michael Stevens:

The year under review (2018-19) has been another busy period for the Royal Household with The Queen undertaking 140 official engagements in the United Kingdom, including the Commonwealth Heads of Government meeting at Buckingham Palace and the visit of the President of the United States to Windsor.

In addition, the programme of other Members of the Royal Family who support The Queen helped the Royal Family deliver over 3,200 official engagements across the UK and overseas.  www.royal.uk/financial-reports-2018-19

Crown Estate Surplus Statements

The Crown Estate surplus for the financial year 2016-17 amounted to £328.8 million, thereby producing a Core Sovereign Grant of £49.3 million for 2018-19. www.royal.uk/…/sovereigngrant2017-18_final.pdf

The Crown Estate surplus for the financial year 2015-16 amounted to £304.4 million, thereby producing a core Sovereign Grant of £45.7 million for 2017-18. www.royal.uk/…/sovereign_grant_2018-19_summary_final.pdf

The Crown Estate surplus for the financial year 2014-15 amounted to £285.1 million thereby producing a Sovereign Grant of £42.8 million for 2016-17. www.royal.uk/…/sovereign_grant_annual_report_2016-17.pdf

The Crown Estate surplus for the financial year 2013-14 amounted to £267.1 million thereby producing a Sovereign Grant of £40.1 million for 2015-16. www.royal.uk/…/sovereign_grant_annual_report_2015-16_0.pdf


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Looking at the 2018/19 profit share between the Treasury and the Royal Family, I am not sure why it wasn’t calculated like this..

£343.5 million profit
£ 34.4 million Buckingham Palace renovations cost
£309.1 million net profit
£262.7 million (85%) to the Treasury
£ 46.4 million (15%) to Royal Family

The taxpayer would have got a bit extra from the Royals.