5 Rarely Spoken Ways In Which Each Royal Family Makes Its Money
Long ago, royal people made money from the taxes of their subjects, but that is not the case of the current British Royals. They actually have several ways of getting money, and it might be surprising news for our readers.
Queen Elizabeth II gets her salary from several places, but they might not seem as rich as other celebrities, so why is it that they can spend so much money on a wedding? We have gathered some insights into this family.
According to several studies, the Queen’s personal money racks up to $470 million; that does not make her the richest British person. The truth is that she is the 321st person with the most money in the country, as reported by the Sunday Times.
Most of the money from the estate goes directly to the Queen or Prince Charles who is the immediate heir to the throne. However, a lot of money is passed down to the rest of the family, with the Duke and Duchess of Cambridge receiving a large chunk of it.
Prince Harry, who recently married former actress Meghan Markle, also receives a large sum of that money. Therefore, we have collected more information on how the British royal family finances are handled, so let’s take a look at the way it works.
The finances – The Sovereign Grant
The three main sources of income are the Sovereign Grant, the Duchy of Lancaster and other properties and investments. The Sovereign Grant, which replaced the Civil Lists and grant-in-aid from the government in 2012, is an annual amount of money received from the government.
In 2016-2017, she was given $58 million, and the tax was waived, but the grant is going to increase significantly for this fiscal year, with about $103 million. This money should be allocated to help with plan renovations for Buckingham Palace.
This money comes from the Crown Estate, several holdings in the United Kingdom – like farms – that make significant amounts of money a year. However, most of the profits stay with the government, and the Royals are given about 15% to 25% of the cut.
Public and private income
The main source of money for these people is the Duchy of Lancaster, a private estate holding featuring commercial land, farming, and suburban homes. This has been in the family for hundreds of years, going back to almost 1265.
It is estimated it made $26 million recently, which is allocated to cover the expenses of official and private events. It would also pay for any member of the royal family who decides to help with the said event in the future.
The personal holdings of Queen Elizabeth II have been passed down for generations, such as Balmoral Castle in Scotland and Sandringham Palace. The family uses this impressive home for vacation, but her money also comes from something other than real estate.
The monarch has a stamp collection, an art collection and owns stocks everywhere. There is also the Crown Jewel to consider, and the art is actually owned by the Royal Collection Trust, an organization. What about the rest of the family?
The rest of the family
Prince Philip gets an annual payment of $488,000, which does not seem like much considering his wife’s fortune, but that is still a lot of money. However, the Duke of Edinburgh has retired from active duty after working for more than sixty years.
The heir, Prince Charles, and his wife, Camilla, get their income from both public and private sources. The bulk of it comes from the Duchy of Cornwall, founded in 1337, and it always passes down to the next in line. This estate has several lands in Britain such as urban land, islands, and rentals.
They took away $28 million from those holding just last year. They also received $1.8 million from the Sovereign Grant and $627,000 from other work related to the government. The couple uses TSG to cover the costs of travel and some other incidentals.
The government covers the costs of official travels to foreign lands and pays for the military to keep the royal family save. More than half of this money is used to their official work, and they also pay taxes. Charles’ kids received $8.9 million from it.
The Prince has to decide what amount of money to give to the newlywed couple, the Duke and Duchess of Sussex, after their wedding. If the children go on official events instead of the Queen, they are also paid back their money.
Prince William and Prince Harry also received a significant amount of money from their late mother, Princess Diana, whose family was prominent in the social scene. Unfortunately, there is not a lot of information regarding the finances of the rest of the family.
Prince Andrew and Prince Edward actually work all the time on behalf of the Queen, so they are given money from the TSG and the Duchy of Lancaster. However, the next generation of royals has to make their own money if they are not directly in line to the throne.
For example, Prince Andrew’s daughters, Beatrice and Eugenie, have regular jobs in the real world, both in business and the world of art, although they do get money from Andrew. It must be hard not receiving as much money.
The royal weddings
With two royal nuptials under the belt this year, the people of Britain often wonder who funds those lavishes. Those that have no idea how this modern family works might believe that people’s taxes pay for these events, but that is not true.
However, the party is covered by the royal family with the money from their various estates as we previously mentioned. It was estimated that they paid around $18 million in security alone, and that does come from taxpayers.
The great thing about the royal wedding is that it incentivizes tourism, which helps recover from the big expanse. There is also the profits from selling memorabilia, and that also ups the economy. The question in mind for some people is whether they should keep the monarchy.
Some say that the expense of the family only costs £1 a year for each person in the United Kingdom, but the truth is that the cost of security year-around is much most expensive for the common people. It's estimated that the crown costs around $400 million a year.
How do they spend their money?
They do not get to go around doing what they want. That money goes to funding public events, like inaugurations, charities, garden parties, and traveling for foreign affairs. We also established that the main source of income of this family is the Duchy of Lancaster and private holdings.
Do they pay their taxes?
Although she is not required, the Queen has been paying taxes since 1992 from her private income and revenues that are not used to fund her work. Prince Charles is also paying his taxes from his profits of the Duchy of Cornwall since 1993. He spent around $5.4 million in taxes last year.
Are monarchs beneficial to the country?
According to VisitBritain, tourism is most eminent on places like Buckingham Palace and Windsor Castle. They get around 2.7 million people every year. The monarchy’s impact on the economy is more than $2 billion every year, with approximately $600 million more from the profits of these travelers.
Trading with other countries increases when a royal takes a visit, with $200 million from it. That is indeed more than they cost, but since the numbers for overseas visitors go for several billions of dollars and the exports make up from than $550 billion, then the monarchy does not earn much.
Do you think nations should abolish monarchies? Are they worth it? The question seems not to be that financial because the country does not have to pay for most of their expenses, so it’s a tricky situation. We would like to know your opinion, so leave a comment below, and share this with your royalty-obsessed friends.