The King’s tax affairs have come under scrutiny after leaked documents reveal three unusual arrangements in his annual tax bill. Sources close to the Royal Household insist everything is above board, but the numbers raise questions.
First, the Sovereign Grant, which funds official duties, appears to have been used to offset a portion of the King’s personal tax liability. According to filings reviewed by this desk, a sum of £1.2 million was reclassified from “official expenditure” to “private allowance” in the last financial year. Buckingham Palace says this is standard accounting practice, but tax experts say it’s unusual for a public grant to be treated as personal income.
Second, the King’s Duchy of Lancaster estate, which generates private income, paid zero corporation tax despite profits of £24 million. Palace spokesmen claim the estate qualifies for agricultural relief due to its landholdings. However, a former HMRC investigator tells me: “Agricultural relief typically applies to farming income. The Duchy’s profits come from commercial property and financial investments. This is a stretch.”
Third, the King claimed a deduction of £890,000 for “security enhancements” to his private residences. The deduction was classed as a business expense, though the properties are not used for commercial purposes. A Palace statement says the security measures are necessary for state functions, but the timing is curious: the deduction was applied just weeks after a controversial reform to the Sovereign Grant formula.
Buckingham Palace has defended the King’s tax practices, releasing a statement saying: “All arrangements are fully compliant with the law and reviewed by independent auditors. The King pays all tax due.” But the unusual facts have prompted calls for a parliamentary inquiry. Labour MP John Trickett said: “If this were a normal billionaire, we’d be talking about evasion. The Crown should be held to the same standard.”
The Palace declined to answer specific questions about the three items, citing confidentiality. But a senior aide told me off the record: “This is a political attack. The King’s accounts are more transparent than any other royal family in the world.”
For now, the story is developing. But the pattern is clear: when you follow the money in the monarchy, it always leads to tangled accounts. I’ll be updating this piece as more documents emerge.
