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Privacy NoticeKing Charles’ siblings, Princess Anne, Prince Edward, and Prince Andrew have all missed out on the late Queen Elizabeth’s £380million fortune to avoid paying inheritance tax, according to experts. The Royal Family is exempt from the standard inheritance tax rules after a clause agreed upon by Sir John Major’s Government in 1993, which stated that any “transfers of assets from one sovereign to his or her successor” avoids the 40 percent charge applied to assets valued at more than £325,000. It also stated that inheritance passed from the consort of a former sovereign to a sovereign is also exempt from inheritance tax.
The King’s three siblings have reportedly missed out
(Image: (Image: Getty))
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Sir Major’s agreement was made at the time to “prevent the dilution of the Crown’s wealth and ensure the continuity of the monarchy’s functioning.” This mean that if any of the King’s siblings inherited any of their mother’s illustrious wealth and assets, they’d be subjected to inheritance tax, reports the Express. The guidance said: “The monarchy as an institution needs sufficient private resources to enable it to continue to perform its traditional role in national life.”
The King’s siblings missed out thanks to the rule
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The Crown Estate has an administering property worth £15.6 billion, but out of its revenue, only 25 percent is given to the monarch as the Sovereign Grant, while the other 75 percent goes to the Treasury. As Charles takes the reins, he’s in control of the Sovereign Grant, which finances the Royal Family’s official roles, setting it at a substantial £86.3million for 2024-25. He also receives a hefty £27 million income from the Duchy of Lancaster, a separate estate full of land, property, and assets meant just for the reigning monarch. The private funds from the Duchy are completely different from the public Sovereign Grant funds.
The late Queen’s will was affected by the royal rule
(Image: Getty Images)
According to government rules, typically when anyone inherits private assets from a sovereign, like our late Queen, they’d have to pay tax. The rules clarify: “In relation to assets which can properly be regarded as private, the arrangements provide that inheritance tax will not be paid on gifts of bequests from one sovereign to the next, but will be payable on gifts and bequests to anyone else.” This detail emerged around the same time Buckingham Palace released its yearly financial statements, revealing a financial boost for the monarchy to over £45 million. Thanks to booming profits from the Crown Estate hitting £1.1 billion, the Sovereign Grant is seeing a massive increase from £86.3 million for the year 2024/2025 up to an eye-watering £132 million for 2025/2026.Story SavedYou can find this story in  My Bookmarks.Or by navigating to the user icon in the top right.Follow OK! MagazineFacebookTwitterCommentMore OnPrince AndrewRoyal FamilyKing Charles IIIPrince EdwardPrincess AnneQueen Elizabeth II
