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Fri, 26 Jun 2026

Fri, 26 Jun 2026 Three unusual things about the King's tax bill

King Charles paid £12.9m in tax for 2024-2025 - here's what we know about his unique tax situation.
The Royal Household has released its annual financial report, which includes King Charles' £12.9m tax bill. However, this payment is unique due to an agreement between the monarch and the government called the Memorandum of Understanding (MoU). Under the MoU, King Charles voluntarily pays income tax, capital gains tax, and inheritance tax, but only on his personal income and private property sales. Unlike regular taxpayers, King Charles is not legally required to pay these taxes. HMRC defines tax as "money that individual people and businesses are legally required to pay to the government", raising questions about whether King Charles' voluntary payments can be considered tax at all. The report reveals that the Royal Household receives £25.2m from the Duchy of Lancaster, but it is not clear what proportion of this income is spent by King Charles personally and what proportion is used for official royal duties. The monarch also does not pay tax on the Sovereign Grant, which is money paid to the Royal Household for official duties. The report aims to increase transparency about the monarchy's finances, with Buckingham Palace stating that it wants to "encourage wider understanding of our accountability". However, some experts argue that there is still a lack of detail in the report and that the public may not fully understand how King Charles' tax bill was calculated.