Taxes
From the British taxpayer to the Royal family
In order to maintain the British Monarchy, United Kingdom taxpayers must pay about 60 pennies per person per year to the Royal family, that means £40 million to the Royal family each year. But why must they pay tax to the royal Family? It goes back to King George III, the king of the UK at the end of the XVIIIth century. The profits from the crown Lands – almost 120,000 hectares of agricultural land, plus the seabed around the UK, were too small to cover his expenses. So he decided to make a deal with parliament: George the third gave the profits from crown lands to the UK and in return he stopped pay for the civil government, the national debt and his personal debt. Those expenses were covered by the Civil List. The revenue pay to the UK from the royal land is about £200 million. So the UK makes a profit of £160 million. This profit divided by the UK taxpayers makes £2.60. So thanks to the royal family, taxes are £2.60 cheaper that they would otherwise be. But it is still their land. Every monarch since George III voluntarily turns the profits from their land to the UK. So if the government stop pay the royal family's living and state expenses the royals will be force to take back the profits from their land, and the taxes will go up, not down. For the supporters of the Monarchy, this change would be "a modern, transparent and simpler way of funding the head of state", while opponent said that it makes no sense at all, “The two are not related. Crown Estate revenue has always been there to provide funds for the government"
So as we said above, the Monarchy is expensive in public funds, but since 1760, the government makes a good profit thanks to the revenue of the crown estate.
In order to maintain the British Monarchy, United Kingdom taxpayers must pay about 60 pennies per person per year to the Royal family, that means £40 million to the Royal family each year. But why must they pay tax to the royal Family? It goes back to King George III, the king of the UK at the end of the XVIIIth century. The profits from the crown Lands – almost 120,000 hectares of agricultural land, plus the seabed around the UK, were too small to cover his expenses. So he decided to make a deal with parliament: George the third gave the profits from crown lands to the UK and in return he stopped pay for the civil government, the national debt and his personal debt. Those expenses were covered by the Civil List. The revenue pay to the UK from the royal land is about £200 million. So the UK makes a profit of £160 million. This profit divided by the UK taxpayers makes £2.60. So thanks to the royal family, taxes are £2.60 cheaper that they would otherwise be. But it is still their land. Every monarch since George III voluntarily turns the profits from their land to the UK. So if the government stop pay the royal family's living and state expenses the royals will be force to take back the profits from their land, and the taxes will go up, not down. For the supporters of the Monarchy, this change would be "a modern, transparent and simpler way of funding the head of state", while opponent said that it makes no sense at all, “The two are not related. Crown Estate revenue has always been there to provide funds for the government"
So as we said above, the Monarchy is expensive in public funds, but since 1760, the government makes a good profit thanks to the revenue of the crown estate.
Taxes paid by the Queen
In 1992, The Queen and other members of the Royal family volunteered to pay income tax and capital gains tax, and since 1993 her personal income has been taxable as for any other taxpayer. This decision was announced by her Prime Minister John Major on November 26th 1992. The Queen consented to this measure essentially because of the discontent of the British people about the lifestyle of the Royal Family. The Queen has always been subject to Value Added Tax and pays local rates on a voluntary basis. But the Queen saves countless millions every year by not having to pay any rent, mortgages or property tax on her various castles. The Queen is to get a £2 million pay rise from April next year after the Crown Estate which funds her made record profits. But the Royal Household will still only cost taxpayers just 53p per person, providing remarkable value for money, say supporters of the monarchy. The Crown Estate, which is nominally owned by the monarch but has sent all its profits to the Treasury since 1760, said yesterday it made a record £252.6million in the year to March - an increase of five per cent. It is the second year that the Queen has enjoyed a big increase in taxpayer funding thanks to the Crown Estate. The exact amount that the Queen will pay, and the size of the private fortune from which the income will be taxable will remain secret. The bequests to the next sovereign will remain free of inheritance tax, but gifts to her other children will be taxed.
So the Queen and other members of the Royal family have been forced to pay taxes in the face of British discontent. But they remain very wealthy.
In 1992, The Queen and other members of the Royal family volunteered to pay income tax and capital gains tax, and since 1993 her personal income has been taxable as for any other taxpayer. This decision was announced by her Prime Minister John Major on November 26th 1992. The Queen consented to this measure essentially because of the discontent of the British people about the lifestyle of the Royal Family. The Queen has always been subject to Value Added Tax and pays local rates on a voluntary basis. But the Queen saves countless millions every year by not having to pay any rent, mortgages or property tax on her various castles. The Queen is to get a £2 million pay rise from April next year after the Crown Estate which funds her made record profits. But the Royal Household will still only cost taxpayers just 53p per person, providing remarkable value for money, say supporters of the monarchy. The Crown Estate, which is nominally owned by the monarch but has sent all its profits to the Treasury since 1760, said yesterday it made a record £252.6million in the year to March - an increase of five per cent. It is the second year that the Queen has enjoyed a big increase in taxpayer funding thanks to the Crown Estate. The exact amount that the Queen will pay, and the size of the private fortune from which the income will be taxable will remain secret. The bequests to the next sovereign will remain free of inheritance tax, but gifts to her other children will be taxed.
So the Queen and other members of the Royal family have been forced to pay taxes in the face of British discontent. But they remain very wealthy.