The British Treasury is now examining the King’s tax affairs after three anomalies were discovered in his latest tax bill, sources confirm. The irregularities, flagged by an internal audit at the Treasury, relate to deductions claimed against the Sovereign Grant and personal income from the Duchy of Lancaster.
The first anomaly concerns an apparent overpayment of £1.2 million in tax relief on property maintenance costs for royal residences. Documents obtained by this reporter show that the expenses claimed are nearly double the market rate for comparable maintenance work on heritage buildings. The second involves undeclared income from a series of commercial property leases within the Duchy of Lancaster portfolio. A leaked spreadsheet lists thirteen leaseholds let at below-market rates to companies with no public listing, some of which are registered in offshore jurisdictions. The third anomaly is the most sensitive: a discrepancy in the King’s personal tax return regarding gifts of art and antiques received from foreign dignitaries. The Treasury is now investigating whether these gifts were properly valued and declared under the applicable tax laws.
The Treasury has not publicly commented, but an internal memo dated last week instructs a team of forensic accountants to conduct a full review. “We are taking these findings seriously,” a Treasury official, speaking on condition of anonymity, told me. “The royal finances have been opaque for too long. It’s time the same scrutiny applied to corporations and individuals is applied to the Crown.”
The Palace has responded with characteristic defensiveness. A spokesperson for Buckingham Palace said the King’s tax affairs are “in order” and that the anomalies are “administrative errors” that have already been corrected. “Any suggestion of impropriety is unfounded,” the statement read. “The King pays all taxes due and has done so voluntarily since 1993.” But the source inside the Treasury counters that the errors appear systematic, not clerical. “These aren’t the kind of mistakes a competent accountant makes. They follow a pattern of underreporting.”
The timing is politically explosive. As the government pushes through cuts to public services and raises taxes on working families, revelations of royal tax avoidance could ignite a crisis of confidence in the monarchy. The Labour opposition has already called for a parliamentary inquiry. “The Crown must be above reproach,” said Shadow Chancellor Rachel Reeves. “If the King is not paying his fair share, that undermines the social contract.”
The monarchy’s tax status has been a long-standing point of contention. While the King voluntarily pays income tax on personal income, the Sovereign Grant – which covers official expenses – is exempt. The Duchy of Lancaster, a private estate worth over £650 million, is treated as a corporation for tax purposes, allowing for deductions not available to individuals. These anomalies feed into a broader debate about the privileges of the Crown and the lack of transparency in its finances.
My investigation continues. I will release further documents as they become available. But the core question remains: who watches the throne?
