The net worth of King Charles III. What did he inherit and how much tax will he have to pay?

King Charles III with Queen Consort Camilla (Source: @RoyalFamily)

Photo: Twitter

The new King Charles III inherited more than just a crown from his mother, Queen Elizabeth II. Charles also inherited a huge portfolio of assets ranging from real estate to jewelry, but there are restrictions on how most of that wealth will be managed and what will be pocketed by the monarch.

Elizabeth II was one of the wealthiest people in the world, with prime real estate from central London, such as Buckingham Palace, to stretches of farmland in Scotland. But unlike other wealthy people, his ability to sell or profit from these assets was very limited.

The brand value of the British monarchy was estimated at $78 billion by Brand Finance in 2017.

The domain of the Crown

The Queen’s largest real estate was managed by Crown Estate, which is owned by the reigning monarch – the one who holds the crown, and will now pass to King Charles III. The Crown Estate’s property portfolio, comprising large swathes of central London such as Regent Street and St James’s, as well as retail parks and countryside outside London, is worth $15.6 billion, according to the Financial Times . This portfolio also includes seabed up to 12 miles off the UK coast. Excess revenue from these lands is directed to the Treasury, which makes a fixed annual payment to the monarch in the form of a “sovereign grant”. In 2016, this subsidy was increased from 15% to 25%, which at the time stood at £396m.

Fortune of King Charles III

Queen Elizabeth’s personal net worth has been estimated at $500 million by Forbes. This wealth is linked to art, jewellery, investments and castles like Balmoral Castle in Scotland and the house of Sandringham in England. Collectively, these assets are worth $500 million. Most of this personal wealth will be transferred to King Charles III.

A direct source of income for the king will come from the Duchy of Lancaster, a private estate of 18,248 hectares which has belonged to the reigning monarch since 1399; the net worth of the property is estimated at £653 million.

Management of Dutchy of Cornwall, a private estate estimated at £1.05billion, formerly held by Charles III, will pass to Prince William as it is given to the heir.

Will King Charles III pay taxes?

Among other privileges granted to the monarch, King Charles III is exempt from inheritance tax, a 40% wealth tax otherwise levied on inheritance under British law.

According to the Royal Family’s website, “The British monarchy is known as a constitutional monarchy. This means that although the sovereign is the head of state, the ability to make and pass laws belongs to a parliament elected. Although the sovereign no longer has a political or executive role, he continues to play an important role in the life of the nation”.

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