- King Charles inherited the Duchy of Lancaster Estate, valued at over $750 million.
- Due to the regulation approved in 1993, he does not have to pay inheritance tax on inheritance.
- The duchy earned the Queen $27 million last year, financial records show.
King Charles won’t have to pay inheritance tax on the Duchy of Lancaster estate he inherited from the Queen because of rules that allow estates to be transferred from one sovereign to another.
Charles directly inherited the king’s main source of income, his estate, while his eldest son, Prince William, inherited the Duchy of Cornwall, which was previously held by his father and is estimated to be worth more than a billion dollars.
Under a 1993 law passed by the British government, the new king waives inheritance tax on his fortune of more than $750 million to prevent the loss of the royal family’s wealth if two monarchs die within a short period of time. News reported.
The provision was first implemented in In 2002, the Queen Mother bequeathed $80 million worth of property to the Queen, including a Fabergé egg.
The clause means members of the royal family will not have to pay 40% tax on assets worth more than £325,000 ($377,000) to help protect their assets.
The estate generated 24 million pounds ($27 million) in income last year, its financial records state, and the monarch is now entitled to the proceeds.
At the end of March this year, he had assets worth more than 650 million pounds ($754 million), according to the Duchy’s website. In the year A law passed in 1702 prohibited the king from selling any property.
In the year
Founded in the 13th century, the Duchy of Lancaster estate consists of “commercial, agricultural and residential” properties, including a portfolio of financial investments, according to its website.
The five rural divisions or surveys cover about 18,000 acres of land in England and Wales.
The foreshore survey covers around 36,000 hectares from the River Mersey, where the city of Liverpool is built, to Barrow-in-Furness in northern England. It also includes a mineral survey of limestone and sandstone quarries from South Wales to North Yorkshire.
However, most of its income comes from urban surveying and includes extensive commercial property interests in central London, such as the Savoy Hotel.
Balmoral and Sandringham mansions are owned by the royal family, and many of the other properties they use are part of the Crown Estate, including Buckingham Palace and Windsor Castle.
The Duchy of Lancaster has been contacted for comment.