A change from the past and a recognition of the future.
A series of announcements from Buckingham Palace on Thursday outlined significant changes to royal residence plans and unprecedented financial transparency. King Charles III and Queen Camilla will not take up residence at Buckingham Palace following its extensive refurbishment, and the King voluntarily disclosed his personal tax payments for the first time.
Decision on Royal Residence
King Charles III and Queen Camilla have decided not to reside at Buckingham Palace after its ongoing renovation program is completed next year. The palace has been the official London residence of the British monarch since Queen Victoria's accession in 1837. The King and Queen will continue to live at Clarence House, a five-bedroom property in London where Charles has resided since 2003.
Royal officials stated that Buckingham Palace will remain the "ceremonial and operational center" of the monarchy. The building will continue to serve as the primary venue for official functions, including receiving foreign dignitaries, hosting garden parties, and state ceremonies. The King and Queen will retain access to private rooms within the palace for daytime use.
James Chalmers, the senior royal official responsible for managing the King's financial affairs (Keeper of the Privy Purse), described the decision as "a change from the past and a recognition of the future." A palace spokesperson stated that the decision was made, in part, to allow for increased public access to the palace. The building currently receives approximately 700,000 visitors per year.
This change makes Charles the first British monarch since Queen Victoria to not make Buckingham Palace his official home.
Buckingham Palace Refurbishment
Buckingham Palace is currently undergoing a major renovation program that began in 2017 and is scheduled for completion next year. The total projected cost of the project is £369 million. The work includes replacing aging electrical wiring, pipes, and heating systems to ensure the building remains functional for another 50 years.
Financial Transparency
As part of the Royal Household's annual financial report, King Charles became the first reigning British monarch to publicly disclose the amount of personal tax he paid to the government.
Key Tax Figures:
- King Charles paid £12.9 million in income and capital gains tax for the 2024-25 financial year.
- He paid £11.7 million in tax for the 2023-24 financial year.
- Since ascending the throne in September 2022, the King has paid over £30 million in tax.
- Prince William, the heir to the throne, paid £7.76 million in income and capital gains tax for the 2024-25 financial year.
By law, the British monarch is not obliged to pay income, capital gains, or inheritance tax. However, the King has continued a voluntary arrangement adopted by the late Queen Elizabeth II in 1993. A palace source stated the decision to publicly disclose the amount was personal and part of ongoing modernization efforts. According to reports, the King's latest tax payment places him among the UK's top 100 taxpayers.
Royal Finances and Income
The monarchy receives funding from several sources.
Sovereign Grant: This is the annual public funding for the monarchy's official duties. The Sovereign Grant is calculated as a percentage of the net profits from the Crown Estate.
- The Sovereign Grant for 2025-26 was £132.1 million.
- The grant for 2026-27 is set to be a record £137.9 million.
- Under current plans, the grant will be reduced to approximately £100 million per year from 2027 to 2032.
Private Income:
- The monarch receives private income from the Duchy of Lancaster estate, which generated £24.4 million net profit in 2024-25 (with a separate figure of £26.8 million cited for gross income for the same period).
- The monarch privately owns Sandringham House and Balmoral Castle and retains profits from those properties.
Duchy of Cornwall:
- The Duchy of Cornwall, which provides income for the heir to the throne, announced plans to invest £500 million over the next decade in housing, renewable energy, and other projects.
Royal Engagements
In the past year, the King and Queen undertook 708 engagements. The royal family completed a total of 2,273 engagements. Prince William's official overseas trip to Saudi Arabia in February cost £130,106.