Fresh tax row as activists call for King to pay £148m on inheritance

‘It’s a joke that he’s exempt’

KING Charles should pay inheritance tax on his late mother’s estate, campaigners said yesterday.

Under rules signed in 1993, the Queen agreed to pay income and capital gains tax – but ‘sovereign-to-sovereign bequests’ are exempt from inheritance tax.

Her late Majesty’s personal wealth, which included property, private investments and racehorses, was estimated to be around £370million. This would mean the King would be liable for an inheritance tax bill – usually charged at 40 per cent above a £325,000 threshold – of £148million.

Yesterday some members of the public agreed with tax campaigners that it was a ‘joke’ that ordinary, middle-class families are forced to pay inheritance tax on their wealth while the King is exempt.

However, others said it was wrong for the Royal Family’s wealth to be whittled away with each generation.

in 2016 the Duke of Westminster, Hugh grosvenor, inherited £9billion almost tax free because his estate was held in trust.

The Royal Family’s wealth has been estimated to be around £24billion, although this includes property such as Buckingham Palace, which only belongs to the monarch in an official capacity. The Queen’s death has sparked fresh debate about the tax advantages granted to the sovereign’s private wealth. Supporters of the 1993 deal argue it is important the monarch has ‘sufficient private resources’.

But Robert Palmer, from Tax Justice UK, said: ‘i don’t think it’s fair that the King isn’t going to be paying inheritance tax on the private fortune he’s going to inherit from his mother.

‘it’s important to make a distinction between money that is held by the Crown and the sovereign, like Buckingham Palace and Windsor Castle – that is a different question. But the King is also inheriting a big chunk of money in racehorses, property and private investments.’

Richard Murphy, a tax campaigner and professor of accountancy at Sheffield University, said: ‘Why should there be one rule for the monarch and another for everyone else? Shouldn’t a constitutional monarch be our equal before the law?’

There was broad agreement among callers to lBC radio station yesterday. A

caller from liverpool said: ‘i think it’s a joke to say the Royal Family would have very little left after inheritance tax.’