Here's why King Charles III will not pay inheritance taxes on a $750 million property
Prince William recently inherited the Duchy of Cornwall estate from his father
King Charles III and Queen Camilla visit Scotland for events relating to his accession.
After ascending to the throne following the death of Britain's longest-serving monarch, Queen Elizabeth II, King Charles III is exempt from paying taxes on his royal inheritance.
The king will not have to pay estate taxes on the newly inherited Duchy of Lancaster property valued at over $750 million. The 45,000-acre estate brought in more than $27 million for the queen last year and includes a luxurious hotel.
A law passed by Parliament in 1993 exempts the king from paying taxes on property inherited from the passing of another monarch. In the United Kingdom, the inheritance tax is 40% and applies to estates valued at over $377,000.
Since 1993, however, Queen Elizabeth did pay capital gain taxes on Lancaster, but it is unclear if the king will continue in his mother's footsteps. Without the 1993 law, Charles would have paid nearly $200 million in taxes on the property.
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Meanwhile, Prince William inherited the Duchy of Cornwall from his father, which is estimated to be worth more than $1 billion.
HOW MUCH MONEY DOES THE BRITISH ROYAL FAMILY MAKE?
The entire Crown Estate has more than $30 billion in assets from various properties and holding that includes Buckingham Palace. Additionally, the Royal Family has an annual income funded by British taxpayers via the Sovereign Grant.
In exchange for surrendering all property profits to the UK government, the monarch is paid an equivalent of 25% of the Crown's estate profits by the treasury.