Her Majesty’s tactical tax bill

THE news that the Queen had agreed to pay income tax was rushed out by John Major to deflect criticism of the royals, files released by the National Archives at Kew reveal.

The then prime minister made the news public as Her Majesty was rocked by her ‘annus horribilis’ of 1992.

During the year, the collapse of Prince Charles and Princess Diana’s marriage was revealed in Andrew Morton’s book Diana: Her True Story, while the Duke and Duchess of York announced their separation and Princess Anne divorced her husband Captain Mark Phillips.

A fire also caused extensive damage to Windsor Castle, prompting an outcry when it was suggested that the estimated £60million repair bill be met by the taxpayer. The scrutiny prompted growing concern about the effect the ‘intrusive and intolerable’ media coverage was having.

Mr Major told the Cabinet that the Queen, who was not subject to taxation, asked him to come up with an arrangement for her to pay tax. Ministers agreed that the move was ‘most welcome’.

The announcement was due within weeks, but Mr Major speeded up the process in an attempt to end media criticism of the Queen.