There is no denying that there are so many benefits of the Royal family in the UK. The joy of having almost free personal butlers, lavish properties, crown jewels, and corgis are some fantastic examples. However, there is a set of rules that are specified for the royal family members that make their lives a little strict than normal people. Are you wondering about UK royals who pay their taxes by now? One of the strict rules is to fulfill the requirement of paying tax. The only difference you will find out is that the royals do not spend hours and hours filing self-assessment tax returns.

This blog is based on the discussion of everything that you need to know about the tax liabilities of the UK royal family members, how are they taxed differently than normal people, are they being taxed at all or not. This will help you to understand the explanation of the exact tax liabilities that are to be fulfilled by the UK royals.

Reach out to our smart and clever-minded guys to get an understanding of the UK royals who pay their taxes queries answered quickly. We will help to answer your queries instantly. 

The UK Royals Who Pay their Taxes?

We all know that people are often of the view that they do not have any tax liabilities at all, but this is not true. The implications of tax are a little different in the royal member’s case. No one from the royal family is considered to be exempted from the royal family.

The tax implications of the royal family are considered to be more complicated than the normal people’s tax liabilities. If you are a beginner, this is imperative to understand that the royal family members are not taxed in the usual way as you do. This is because of the fact that the royals are not considered ordinary British citizens. So the tax is implicated differently too.

Normal Jobs and the UK Royals – How are They Taxed Differently?

A normal job like the ordinary citizen is not associated with any of the Royal family members. However, on behalf of the Crown Estate, there are a few responsibilities to fulfil for them as well. This Crown Estate is not under the ownership of any of the royal family members and not even the government. The hereditary possessions of The Sovereign in the right of the crown are considered to be something associated with it. Moreover, HMRC takes the responsibility of collecting the profits of the crown state. The fund share is then provided to the royal family members.

Furthermore, Sovereign Grant is a way to pay the royal members. Crown state funds or any other relevant income that goes to any of the royal family members is not taxed and there is no tax paid on it. Precisely we can say that the royal family pay the government itself to provide them with the funds. This is why there is no tax on such funds.

Are UK Royals Being Taxed at All?

This is a myth that the UK royals are not obliged to pay the tax of any kind. The funds that are received from the government through Sovereign Grants are not taxed. The major reason behind that is that this money is going from the royals. In simple words, the royals are paying this money to the government to pay them. When it comes to the personal income of the royal family members, they are required to pay the highest tax band because they come under the relevant category of being high earners. They pay the council tax on the properties they own, vat, and road tax as well.

Moreover, this is surprising to know how much council tax can be generated on royal properties like Buckingham Palace just because of being big in the size. As council tax, an amount of approx £1,500 is paid every year for the royal properties. So you can imagine how much is being generated by the royals.

The Bottom Line

Now that you have gathered a fair amount of information about UK royals who pay their taxes, we can bring the discussion towards wrapping up. The UK royals only get an exemption from tax on the amount that they receive through the Sovereign Grant. Otherwise, they are being taxed under the highest tax band because they are considered the highest earners. We hope these few minutes of reading will help you to understand the tax implications for the UK royal family members and whether there are any tax exemptions for them or not.

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