Royal finances: Where does the King get his money?

The authorities has confirmed however overmuch wealth it gave to the Royal Family successful 2022-23.

The taxpayer-funded settlement, known arsenic the Sovereign Grant, is paid each twelvemonth - but is not the King's lone root of income.

For 2022-2023, the Sovereign Grant was worthy £86.3m, the aforesaid arsenic successful 2021-2022.

But repairs to Buckingham Palace - which is undergoing a 10-year £369m refurbishment plan - and the costs associated with King Charles succeeding Queen Elizabeth, positive higher-than-expected inflation, took full spending for the play to £107.5m.

That represents a 5% summation connected the £102.4m spent the erstwhile year.

The shortfall, with spending greater than the Sovereign Grant, meant drafting connected £20.7m from reserves.

The immense bulk is spent connected the upkeep of properties and unit costs.

Members of the Royal Family carried retired 2,700 engagements crossed the UK and overseas during the year.

More than 95,000 guests attended 330 events astatine royal residences, including receptions, grant investitures and plot parties. Buckingham Palace received much than 183,000 items of correspondence.

The magnitude is based connected a proportionality of the profits of the Crown Estate, a spot concern owned by the monarch but tally independently. It had assets worthy £16.5bn successful 2022.

The Crown Estate includes astir £8bn of properties successful London, including Regent Street, arsenic good arsenic astir fractional the onshore on the seashore of England, Wales and Northern Ireland.

It is not the King's backstage spot - it simply belongs to the monarch for the duration of their reign. The King cannot merchantability its assets oregon support immoderate profits for himself.

Normally, the magnitude for the monarchy is calculated arsenic 15% of the Crown Estate profits from the erstwhile 2 years. The profits spell to the Treasury, but past 15% of that magnitude is utilized for the Sovereign Grant.

However, successful 2017 it was agreed that this would summation to 25% for 10 years to assistance wage for the Buckingham Palace repairs.

Under the Sovereign Grant Act 2011, if the Crown Estate's profits fall, the monarch inactive receives the aforesaid magnitude arsenic the erstwhile year, with the authorities making up the difference.

In future, that percent fixed to the Royals is apt to reduce, and a reappraisal is presently nether mode with a determination expected successful the adjacent fewer months.

This follows an expected summation successful profits from six caller offshore upwind farms connected the Crown Estate, worthy £1bn.

In 1760, King George III reached an statement with the authorities to surrender his income from the Crown Estate.

In return, it was agreed that the King (and his successors) would person a fixed yearly outgo - known arsenic the Civil List.

The Sovereign Grant replaced the Civil List successful 2012.

It covers much than 18,000 hectares of onshore successful areas specified arsenic Lancashire and Yorkshire, arsenic good arsenic spot successful cardinal London. Worth £654m, it generates astir £20m a twelvemonth successful profits.

It chiefly covers onshore successful south-west England. Worth £1bn, it generated a nett surplus of £24m successful 2022-23.

The King and Prince William person the profits from the duchies personally, and tin walk them arsenic they wish. However, they are not entitled to immoderate proceeds from the merchantability of immoderate property assets, which indispensable beryllium reinvested.

The monarch besides owns the royal palaces (which are not portion of the Crown Estate) and portion of the Royal Collection of art, but these bash not make income.

Some palaces are looked aft and funded by the Royal Family itself. Others - specified arsenic the Tower of London - are managed by Historic Royal Palaces, an autarkic charity.

The Royal Collection is besides tally by a charity, the Royal Collection Trust, which reinvests income received from summons income and retail outlets.

The Queen besides earned income done properties specified arsenic Sandringham and Balmoral, which she owned personally.

In addition, immoderate Royal Family members person backstage art, jewellery and stamp collections which they tin merchantability oregon usage to make income arsenic they wish.

In 1992, The Queen volunteered to wage income taxation and superior gains taxation connected her idiosyncratic income, and the King does the same.

The 2 duchies are exempt from corp tax, but the King and the Prince of Wales voluntarily wage income taxation connected the gross they generate.

They bash not wage superior gains taxation due to the fact that they bash not payment personally from immoderate summation successful the duchies' assets.

Members of the Royal Family wage taxation connected immoderate income generated from privately-owned assets.

King Charles does not person to wage inheritance taxation connected the wealth helium received erstwhile Queen Elizabeth died, nether the "sovereign to sovereign" exemption agreed successful 1993 by past Prime Minister John Major.

Some reason that the existent outgo of the Royal Family is overmuch greater than the size of the Sovereign Grant.

It does not screen their information arrangements, which are usually picked up by the Metropolitan Police, though the outgo is not disclosed.

Republic, an organisation which campaigns for an elected caput of state, antecedently estimated that the full yearly outgo of the monarchy - erstwhile information is factored successful - is astir £345m.

It is intolerable to supply a factual fig for the standard of the Royal Family's publication to the UK economy. Estimates alteration considerably.

However, Republic questions the validity of its sums, and argues that overmuch of the Royal Family's assets are successful information the spot of the state, and person nary worth due to the fact that they cannot beryllium sold.