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King Charles should pay inheritance tax, say 63% of Britons

King Charles III is set to pay inheritance tax on the late Queen Elizabeth II’s personal fortune that Britons resent, according to the results of a new survey undertaken days after the new monarch’s accession.

Reports that the king would not be expected to pay the 40% inheritance tax on any of the private properties passed on to him by his mother began circulating immediately after his death, following the creation of a memorandum on royal taxation overseen by Elizabeth and the United Kingdom. government in 1993.

In 2022, the Queen’s personal wealth was estimated at around £370 million ($433 million) by Britain Sunday time.

This wealth is distinct from the institutional assets associated with the crown, such as the crown jewels, palaces and state lands, the royal collection of works of art, and the revenue reserves related to the sovereign endowment.

King Charles III is pictured during the state funeral of Queen Elizabeth II on September 19, 2022. Charles is exempt from paying inheritance tax on property inherited from the Queen, inset, under a 1993 memorandum on the royal taxation.
MARCO BERTORELLO/AFP via Getty Images/Victoria Jones – WPA Pool/Getty Images

The memorandum states that in the case of assets which can “justly be regarded as the private property” of the monarch, “inheritance tax will not be paid on gifts or legacies from one sovereign to another , but will be due on donations and bequests to someone else.”

This means that anything left to Charles will be tax exempt, while inheritances left to any other members of the Royal Family will be subject to Inheritance Tax, which in the UK is 40% of the value of the estates. bequests over £325,000 ($368,000).

A poll commissioned by Tax Justice UK, an organization which campaigns and advocates for a fair and sustainable tax system in Britain, showed that 63% of respondents believe Charles should have to pay inheritance tax.

Carried out by market research firm YouGov, the poll also showed that just 16% of Britons polled believed the king should be exempt from paying inheritance tax, while 21% said they didn’t know.

The rationale for the special arrangements for the monarch made in the 1993 memorandum states that:

“The monarchy as an institution needs sufficient private resources to enable it to continue to play its traditional role in national life and to have some financial independence from the government in place.”

A statement from Robert Palmer, of Tax Justice UK, said of the poll results: “It is clear from this poll that the public believes King Charles should pay inheritance tax on the private wealth he will inherit at the end of his life. following the Queen’s death.

“The fact that the monarch pays no inheritance tax is just one example of how the tax system is designed so that the wealthy can pay low levels of tax.

“Politicians should ask those who can afford it, including the very wealthy, to pay more taxes.”

King should pay inheritance tax, Brits say
King Charles III (then Prince of Wales) at the official opening of Parliament in London on May 10, 2022. A poll found that 63% of Britons believe Charles should pay inheritance tax on an estimated personal fortune of 433 million dollars from Queen Elizabeth II.
Alastair Grant – WPA Pool/Getty Images

Graham Smith, CEO of Republic, an anti-monarchy campaign group, took a tougher stance on the matter, previously recounting Newsweek that the arrangement was a “shame”.

“In short, it’s an absolute disgrace. There’s no justification for it,” he said.

“It has been the case for some time, that the monarch does not pay inheritance tax when he ascends the throne. There is absolutely no justification for allowing them to accumulate this enormous wealth.”

“We just keep giving them more money and they keep hoarding it while spending more of our money on day-to-day expenses,” he continued.

“There needs to be a full review of royal funding and they need to be aligned to the same rules that everyone has to follow.”

The debate arose as Britain saw inflation hit a 40-year high in July at 10.1%.

Charles came face to face with a member of the public complaining about the extravagance of the monarchy as Britain faces a cost of living crisis during a walk in Wales last week.

Waving to a crowd of people, a man shouted: “Charles! While we struggle to heat our homes, we have to pay for your parade. The taxpayer is paying £100m for you, and for what?”

So far there has been no official comment from Buckingham Palace following the Queen’s death regarding the tax arrangements.

Queen Elizabeth II died on September 8 at her Scottish home of Balmoral Castle. In accordance with tradition, his son Charles became king at the time of his death.

Newsweek approached Buckingham Palace for comment.