Questionable finances Royals cash in on schools and the cash-strapped health service
Tradition plays an important role in the UK - and ensures that the royal family is solvent. Some of the items that contribute to the wealth of King Charles III and his family are astonishing.
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- King Charles and Prince William are criticized in the United Kingdom for their finances.
- The Windsors collect millions from charitable and state institutions, but don't have to pay taxes for it.
- Prince William in particular has been criticized: he is a hypocrite because he "milks" public services that then lack money for social projects, scolded presenter Jean Johansson.
He is not only the ceremonially crowned head of state of Great Britain. Charles III is also something like the king of landowners. The British monarch and his eldest son Prince William own huge tracts of land in the kingdom.
This is made possible by tradition. The king receives the income from the Duchy of Lancaster, which was established in 1399. The heir to the throne receives those from the Duchy of Cornwall, which has existed since 1337.
The lands and properties bring Charles, who celebrates his 76th birthday on Thursday, and William a lot of money every year. Research by the "Sunday Times" newspaper and Channel 4 revealed a total income of 50 million pounds (56.5 million francs) for the past year.
Royals collect rent for schools and prisons
However, some items on the list are causing a stir. Charles' Duchy of Lancaster, for example, will receive a total of 11.4 million pounds over 15 years from an organization of the financially ailing NHS health service. This involves a warehouse in London where ambulances are stored.
The estates also receive money from the Ministry of Defense for access to moor boats and refuel warships, from state schools for the use of their land and from a local council for the operation of a toll bridge. There is also a prison on royal land: the multi-million pound lease is paid for by the Ministry of Justice with taxpayers' money.
The Duchy of Lancaster said it operates "as a commercial company managing a wide range of land and property assets in England and Wales". A spokesman for William's Duchy of Cornwall told the BBC that it was "a private manager with a commercial aspiration". All British laws and regulatory requirements would be followed.
The royal finances are attracting critics. They have long been pushing for a reform of how the estates and properties are taxed. Due to an agreement with the Ministry of Finance, neither capital gains tax nor corporation tax is due. The administrations also do not have to comply with property laws such as expropriation orders.
Prince William "milks" public services
Former MP Margaret Hodge told the BBC: "We all love the monarchy, we all want it to work. But we want it to lead by example in the way it manages its finances."
The royal family cannot have it both ways, he said. "If they want to be private and commercial, they have to pay the fair rate of tax like everyone else, otherwise they get a competitive advantage," Hodge said.
The organization Republic, which is critical of the monarchy, is calling for the royals to receive significantly less tax money and finance much more privately. This would be an important symbolic step, especially in times of tight public budgets.
In her column for the Sunday Mail, presenter Jean Johansson criticized Prince William in particular as a hypocrite. The 42-year-old has declared it his goal to end homelessness.
However, William is actually "milking" public services, which therefore have less money for those left behind, Johansson emphasized. "How can it be that the whole nation is not outraged by this?" According to the presenter, the royals were lucky: the US election overshadowed the publication and there was no outcry.
Private property of inestimable value
The Windsors' financial dealings have always been a source of controversy. Official residences such as Buckingham Palace are financed by income from the Crown Estate. This Crown Estate also owns large areas of land and valuable real estate, as well as the seabed in the British twelve-mile zone. The royal family receives a 25 percent share of the estate manager's income, known as the Sovereign Grant.
In addition, there is the private property: valuable horses, historic vehicles, the largest stamp collection in the world, countless masterpieces and shares. A huge part of the fortune consists of jewels, which were mainly collected by Charles' great-grandmother Queen Mary and which the King inherited from his mother Queen Elizabeth II. Inheritance tax was not due on this.
Meanwhile, the King and heir to the throne voluntarily pay the highest income tax rate of 45 percent on their income. In the last tax return, it was revealed that Charles had paid 5.9 million pounds and thus only a tax rate of 25 percent. The monarch had deducted expenses that he felt were connected to his official duties.
