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Do royals pay taxes?

The King pays tax. In 1992, Queen Elizabeth II volunteered to pay income tax and capital gains tax, and since 1993 the Monarch's personal income has been taxable as for any other taxpayer. The King is subject to Value Added Tax and pays local rates on a voluntary basis.



In the United Kingdom, the Monarch has no legal obligation to pay income tax, capital gains tax, or inheritance tax because the relevant enactments do not apply to the Crown. However, since 1993, the Monarch has voluntarily paid income tax and capital gains tax on personal income and profits from the Duchy of Lancaster that are not used for official purposes. The Prince of Wales also voluntarily pays income tax on the net revenues of the Duchy of Cornwall. Other members of the Royal Family are subject to tax just like any other citizen on their private income. The Sovereign Grant, which funds the Monarch's official duties, is not taxed. Furthermore, "Sovereign to Sovereign" inheritance (such as from the late Queen to King Charles) is exempt from inheritance tax to prevent the private estate of the Monarchy from being fragmented through taxation over successive generations.

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