The passing of Queen Elizabeth II has been followed by the accession of the new King Charles III, who inherited not just the throne, but significant wealth. He is even more fortunate as the taxman has nothing on him.
How do you mean?
Following the passing of Queen Elizabeth II, King Charles III inherited the Duchy of Lancaster, a royal nest egg worth more than $750m. Unfortunately for U.K. tax collectors, though, he won’t have to pay a penny of inheritance taxes on the windfall, thanks to a U.K. government rule passed in 1993. His eldest son, Prince William, also came into a new fortune due to the domino effect of royal succession. He received control of the Duchy of Cornwall, which is worth roughly $1b.
What was the reasoning behind the rule?
It was introduced in order to protect the royal family’s assets from being drained if two monarchs were to die too close to one another. Thanks to the rule – and unlike the rest of the populace – the royal family does not have to pay the 40% tax on property valued at over $377,000. The Queen chose to pay income and capital gains tax on the royal estate in 1993 after the rule was enacted, but it’s unclear if Charles III will follow in her footsteps.