Sources close to the Treasury have confirmed that officials are scrutinising the monarch’s tax affairs after three “irregularities” were flagged in the King’s latest tax return. The investigation, which is being led by HM Revenue & Customs, centres on discrepancies in the Sovereign Grant accounts and private income declarations. One source described the anomalies as “concerning” and said they could indicate a failure to comply with the voluntary tax arrangement agreed between the Crown and the Treasury.
The Palace has refused to comment, but insiders suggest the King’s financial advisers are “cooperating fully”. This is not the first time royal finances have raised eyebrows. In 2022, leaked documents showed the Duchy of Cornwall had used offshore structures to minimise tax liabilities.
Now, the spotlight is back on the monarchy’s money. The three anomalies are understood to involve undeclared income from a property portfolio in central London, a misclassified deduction linked to the Duchy of Lancaster, and a discrepancy in the valuation of assets used for inheritance tax purposes. A Treasury whistleblower told this reporter that “the numbers don’t add up” and that “someone is trying to hide something”.
The investigation comes at a sensitive time: the King is seeking a 50% increase in the Sovereign Grant to fund palace renovations. MPs on the Public Accounts Committee have already demanded answers. One senior Labour MP said: “If the King wants more taxpayer money, he must prove he is paying his fair share.
” Meanwhile, the Palace maintains that the King pays tax voluntarily and has done so “in full and on time”. But the anomalies suggest otherwise. This is a developing story.
Follow the money.
