King Charles discloses £12.9m tax bill but limits detail on royal income
For the first time, a British monarch has voluntarily disclosed personal tax payments, with King Charles III paying £12.9 million for 2024-25. The move follows years of pressure for transparency, yet the single figure comes without any breakdown of income sources or tax calculations.
A historic disclosure
King Charles III became the first monarch in modern times to reveal his personal tax bill, publishing a figure of £12.9 million for the 2024-25 tax year. The payment, along with Prince William's, was released alongside the Royal Household's annual financial report. The total tax paid over the past two years amounts to £24.6 million, according to The Guardian, and since acceding to the throne Charles has paid more than £30 million. The Sovereign Grant, the public funding covering official duties, is set to rise to £99.9 million next year.
The move to publish the King's tax bill... as well as Prince William's... aims to encourage wider understanding of our accountability.
Voluntary, not compulsory
Unlike ordinary taxpayers, the monarch is not legally required to pay income tax, capital gains tax, or inheritance tax. Instead, under a Memorandum of Understanding (MoU) first agreed in 1993 after public pressure, the sovereign voluntarily pays some of these taxes. The agreement was updated in 2023 following Queen Elizabeth II's death.
If it's voluntary, it's not tax.
The King also pays VAT, employer taxes, and local rates "in line with requirements", according to the report. However, the MoU arrangement means that only income spent personally is taxed; money from the Privy Purse used for official duties is exempt, effectively allowing the monarch to deduct royal functions from his tax bill, a distinction not available to other self-employed individuals.
- MoU established: Queen Elizabeth II agrees to voluntary tax payments after public debate.
- Charles accedes to the throne following Queen Elizabeth's death.
- MoU updated to reflect the new monarch.
- King Charles publishes first-ever personal tax bill of £12.9 million.
What remains hidden
Despite the headline figure, the accounts provide no breakdown of how the £12.9 million was calculated. It is unclear what proportion comes from income tax versus capital gains tax, or how much stems from the Duchy of Lancaster income versus other private earnings. The Duchy paid Charles £25.2 million in the year to 31 March, up from £24.4 million the previous year, but his personal investment income and trading profits are undisclosed.
- 2023-24
- 24.4 £ million
- 2024-25
- 25.2 £ million
The Keeper of the Privy Purse defended the system, while acknowledging its complexity.
While Royal finances can sometimes appear complex, the underlying system is clear in principle, structured in law and refined over time to ensure the Monarch can serve with independence, accountability and in the long-term interests of the nation.
Optics and accountability
The publication comes amid heightened scrutiny following the Andrew-Epstein scandal, which prompted MPs and the public to demand greater accountability over royal spending. The £99.9 million Sovereign Grant figure, presented just below the £100 million threshold, has been compared to retail "charm pricing" and reflects the sensitivity around public perceptions of royal finances. The King has also announced he will not live at Buckingham Palace, despite a £359 million refurbishment funded from the public purse.
Commentators have described the move as a "feeble half glance" that leaves many questions unanswered, while acknowledging that abandoning centuries of opacity is a constitutional shift. Historian Anna Whitelock noted the disclosure is a step forward but questioned its depth: "There's not any breakdown of about how that was arrived at."
