Why King Charles will pay zero inheritance tax on the Queen’s private fortune
The IndependentSign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. The inheritance section of the memorandum begins by noting that some royal assets are held by the Queen as “as Sovereign rather than as a private individual” and that “it would clearly be inappropriate for inheritance tax to be paid in respect of such assets”. The next paragraph of the memorandum also exempts the monarch’s private property from inheritance tax, when it is being passed down as inheritance to the next sovereign. It says: “In relation to assets which can properly be regarded as private, the arrangements provide that inheritance tax will not be paid on gifts or bequests from one Sovereign to the next, but will be payable on gifts and bequests to anyone else.” This means that anything Charles inherits from Queen Elizabeth is not subject to inheritance tax. As the memorandum puts it: “The reasons for not taxing assets passing to the next Sovereign are that private assets such as Sandringham and Balmoral have official as well as private use, and that the Monarchy as an institution needs sufficient private resources to enable it to continue to perform its traditional role in national life, and to have a degree of financial independence from the Government of the day.” It should be noted that while only some of the monarch’s assets have “official as well as private” uses, all of them are exempt from inheritance tax – whether it is Sandringham House or a racehorse.
History of this topic
Inheritance tax raid to hit Zara Tindall when she inherits Princess Royal’s estate
The Telegraph
Labour considering inheritance tax raid to ‘redistribute’ wealth
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"Taxing the king’s income doesn't have to be complicated"
Dutch News
"Taxing the king’s income doesn't have to be complicated"
Dutch News
No 10 ‘considers scrapping inheritance tax’ in bid to save Tory seats
The Independent
How does inheritance work in the royal family?
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Britain's new king: Charles to inherit private fortune of Queen Elizabeth II
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