King Charles To Get A 45% Pay Rise

[BuxFizz]

“The review of the Royal funding settlement was heavily spun by the Treasury to give the impression that the King would be taking a pay cut so the Crown Estates funds could instead be spent on public services.

In fact, the report reveals the Monarchy is due to receive a huge pay increase.

In 2025, the King’s public funding will increase by a projected £38.5 million.

Lord Turnbull, a former cabinet secretary and Whitehall’s most senior civil servant, who was involved in the official discussions accused the Treasury of seeking to obfuscate how the Monarchy was funded.

He said that linking the Royal finances to the profits of the Crown Estates was “silly” and motivated by a desire to promote the idea that the King was paying for himself and was reducing the burden on the taxpayer.

The complicated formula used to determine the Sovereign Grant was introduced in 2011 by then Prime Minister David Cameron, and his Chancellor George Osborne. Removing Parliament’s centuries old control over Royal funding. They created a new formula that tied the Monarch’s funding to a percentage of the profits of the Crown Estates.”

I’m surprised that this formula to calculate the Sovereign Grant was so recent, does anyone know how it was calculated before?

Also, the irony isn’t lost on me that this new formula was proposed by George Osborne, one the chief architects of Austerity.

King Charles Set To Receive A Huge Pay Rise From UK Taxpayers

Annual Cost of Royal,House per taxpayer. Make of it what you will.
Belgium. €3.15
Denmark €2.30
Netherlands €2.40
Norway. €9.70
Spain. €0.16
Sweden. €1.30
UK. €0.70
Netherlands and Norway don’t pay any tax.
Source: wikipedia

I'd like to pay them £0:00, demand they release a proportion of their assets and pay taxes.

Annual Cost of Royal,House per taxpayer. Make of it what you will.

Meaningless really when we're not allowed to know how much their security costs and we then have to factor in the cost of their knees-ups. That's before we get started on monarch to monarch bequests free of IHT and the many decades worth of tax breaks enjoyed before they started paying tax 'voluntarily'.

So many hidden costs.

This sums it up!

https://edition.cnn.com/2020/03/14/europe/european-royal-families-intl/index.html

Yes, I don’t particularly follow what Harry & Meghan but I remember all that outrage about them renovating Frogmore Cottage and spending millions of tax-payers money! 😡😡😡

Now, you have people claiming that the Royals practically pay for themselves; the Crown Estates profits is their money and they’re doing the public a favour by only taking 25%.

Well.... they paid it back too. And a lot of it was a necessary overhaul of a royal property. But they paid for it. So taxpayers didn't pick up the tab. And this was in the official Royal Report, so not just made up!

Yeah, they paid it back. I’m not disputing that.

I just remember the whole outrage around it, when millions are spent other Royal residences and it’s not seen as a big deal.

It’s the switching in narratives between the Sovereign Grant is tax-payers money to the Royals “paying for themselves” depending on who’s doing the spending.

Actually come to think of it, why did they even pay back for the renovations when they don’t even own the property?

Charles also pays 0 cooperation tax from the profits generated by his duchies, first Cornwall and now Lancaster.

The Duchies are not subject to corporation tax because they are not corporations. However, Charles and his late mother paid and still
pay a sum equal to corporate income tax on both these Duchies voluntarily since 1993.

Also paid 0 inheritance tax

He paid inheritance tax on what he inherited from his grandmother Elizabeth the Queen mother and from his father, Prince Phillip. His mothers estate isn’t subject to inheritance tax as she was Queen, however Charles has voluntarily paid a sum equal to inheritance tax on her private estate. He can’t voluntarily pay IHT on say the Crown Estate as he doesn’t have the right to do so per the constitution.

It’s all there on Wiki and with sources.

He can’t voluntarily pay IHT on say the Crown Estate as he doesn’t have the right to do so per the constitution

I've read different to that in many sources with regard to the huge wealth passed down to him by his mother making him a multi billionaire.. He voluntarily chooses to pay some income tax after all. Anyone can voluntarily pay tax and that includes Charles. It would enhance his reputation and that of the Monarchy. He chooses not to go down that path with regards to IHT. .

The wealth his mum passed to him, he did voluntarily pay a sum equal to IHT.

His mum didn’t pass him the Crown Estate though. It’s not private property so cannot be inherited from a person. It simply is property held in trust by whoever wears the Crown. For example, if Charles had refused the crown and it had gone straight to William, William would own the Crown Estate in trust even though Charles is still living.

He voluntarily chooses to pay some income tax after all.

Yes, I think since the 1980s he has also voluntarily paid income tax on all his income as well. This is in addition to the voluntarily paid corporation tax paid by the Duchies from their profits- this would be income tax he pays on whatever in Im he then personally gets from the Duchies.

The wealth his mum passed to him, he did voluntarily pay a sum equal to IHT

Have you got a source for that? Everything I have ever seen says completely the opposite

A “Memorandum of Understanding on Royal Taxation" was published on 5 February 1993 and amended in 1996, 2009, 2013 and 2023. It was intended that the arrangements in the memorandum be followed by the next monarch. The memorandum describes the arrangements by which Elizabeth II and the then Prince Charles made voluntary payments to HM Revenue and Customs in lieu of tax to compensate for their tax exemption.

When it was done in 1993, the Independent reported as follows:
”THE TAX arrangements for the Queen and the Prince of Wales, we are told, are essentially the same as for any other taxpayer.
This means that they will have a personal allowance of pounds 3,445, the first slices of income taxed at 20 and 25 per cent and a top rate of 40 per cent. They will pay capital gains tax at 40 per cent on asset sales after inflation has been taken into account, and inheritance tax at 40 per cent after an allowance of pounds 140,000.”
https://www.independent.co.uk/news/uk/the-queen-s-finances-ordinary-tax-allowances-for-royals-1472424.html

(the allowance has gone up in line with the IHT exemption for everyone). I mention this so you can see it’s been in place since 1993 and not a new change.

I have added a screen shots from the latest MOU on Royal Taxation from 2023 and it says quite clearly he is paying CGT, Income taxes and IHT taxes on any private property he inherits from the late Queen despite not being legally subject to them.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1172709/Memorandum_of_Understanding_on_Royal_Taxation__008_.pdf

So the media is correct but deceptive, he’s technically not paying IHT…but he is paying a sum equal to what IHT would be if he were taxed…,

@MillicentBystandr

Have you posted the wrong document ?

Because the one above CONFIRMS that Charles pays no IHT.
How much is this ‘private amount’ that you say equals the IHT that he should be paying, can you tell us?

How do you know it’s ‘equal ‘ to the unpaid IHT when their wills are secret ?

That document has no figures and a lot of use of the terms ‘private’ and ‘public’ and we know how those terms are used to screw the public out of much needed tax revenue

And who decides which is private income?
Oh wait , I know this one! It’s the ‘royals’ themselves , isn’t it ?!

The voluntary income tax they do pay, they were forced into in early 1990s - v recent . And there is one regime for the ‘royals’ and one regime for the rest of us.
The royals get to pick and choose which of their billions they will offer to be taxed which they will decree ‘private’

Yes there’s the other old complaint . Of course the rest of us have to follow tax law and what is taxable is predetermined

The ‘royals ‘ should be paying corporation tax on the Duchys . They don’t . Why not ? Because Charles days no. Simple as that .

This is why royal wills are the only ones secret - for a good reason.To hide their vast wealth ( a few other things which would distress the dwindling numbers of fools who still think the Windsors are admirable)

Did you know that the royals are not supposed to own anything privately ?
That was the law when the king was bankrupt.
Victoria got it changed . Hence how they got Balmoral and Sandringham. Yes , they were given the money to buy these from Victorian tax payers

Plus ca change…

https://www.theguardian.com/uk-news/commentisfree/2023/apr/29/charles-coronation-pay-king-uk-taxpayers

How do you know it’s ‘equal ‘ to the unpaid IHT when their wills are secret ?
Their wills are not in the public domain, but HMRC has access to records detailing all their assets as part of auditing the taxes they do voluntarily pay.

Wills don’t have up to the minute values of anyone’s estate anyway so this is an odd thing to bring up in the context of paying IHT.

And who decides which is private income?
The Government- as in HMRC civil servants IAW with constitutional principles, statutory law and policy guidelines.

The royals get to pick and choose which of their billions they will offer to be taxed which they will decree ‘private’
No they do not.

The ‘royals ‘ should be paying corporation tax on the Duchys . They don’t .
They pay a sum equal to corporation tax.

Their wills are not in the public domain, but HMRC has access to records detailing all their assets as part of auditing the taxes they do voluntarily pay.
Wills don’t have up to the minute values of anyone’s estate anyway so this is an odd thing to bring up in the context of paying IHT

What on earth does that mean? I was executor of a Will that had to pay IHT. I knew the liable amount and the IHT payable.

Of course Charles didn't pay millions in IHT, it's laughable to think he did! Where are all these sums 'equal to' these taxes he supposedly paid? There is nothing to prove that claim

@MillicentBystandr

Your posts remind me of the reports that Charles was slimming down the ‘royals’

Yes fewer people - but the quiet bit was that the money would be going up !

Good try though

‘Auditing the assets they do voluntarily pay’
let’s look at this @MillicentBystandr

So the royals decide which monies they will offer to be taxed and HRMC check they have paid the correct amount - on the bit they offered??

Sounds right

@MillicentBystandr

’And who decides which is private income?
The Government- as in HMRC civil servants IAW with constitutional principles, statutory law and policy guidelines. ‘

In other words - the ‘royals’ do .

‘Policy guidelines’ doing a lot of heavy lifting there

@MillicentBystandr I have read what you've posted and can't see anything about Charles voluntarily paying inheritance tax. The Independent seems to be your only source regarding inheritance tax and that simply says 'we are told'. Every recent report says he is not paying inheritance tax.
I found this bit interesting:
"Some assets are held by The King as Sovereign rather than as a private individual. They are not sold to provide income or capital for the personal use of The King and pass from one Sovereign to the next."
Well lots of people leave homes and family heirlooms which are passed from one generation to the next, some of which will never be sold, so why aren't they exempt? If thats the reasoning for them, that these assets are not sold for income or capital, then everyone else should have the same exemption. If a house passes form one generation to the next currently, it can be subject to inheritance tax. Despite tax already being paid on the money used to purchase it!

I don't know how ordinary people can defend the royal family. I really don't.

Our homes/heirlooms are our private property that we can sell or gift or divide up in a will as we wish. The assets held by King as Sovereign, are not his private property. He cannot sell them, he cannot gift them, he cannot divide them up in a will. He hasn’t personally inherited the assets.

The royals are not the Government.

No, the royals do not decide what us taxable and what is not taxable. Yes the royals send in what they will pay in voluntary tax and the HMRC checks that it is correct as that info isn’t kept secret from the Government, it is just not free for the public to see. This is the same as for anyone doing a self assessment…so yes it’s about right.