Because some assets, such as the official residences, the Royal Archives, the Royal Collection of paintings and other works of art are not sold to provide income or capital for the personal use of the king, and pass from one sovereign to the next, it would be inappropriate for inheritance tax to be paid on them, the agreement argues.
A former senior official involved in past decisions about royal finances said this system had been designed to ensure the British monarchy, which still has public support, is “not placed in a position of subservience” to the government of the day. It is also meant to allow the royals the “same principle of confidentiality” as other British citizens.
But that same former official, granted anonymity to speak candidly, warned there was a “quid pro quo” to that.
“The public will acquiesce in these arrangements if it is seen that the members of the royal family conduct themselves in a way that is, although privileged, not extravagant, and not flagrant. Things break down if there are members of the royal family who aren’t keeping that side of the bargain,” the former official added.
Senior royals are acutely conscious of the sensitivities around the way they’re funded. William is reported to be mindful of the cost of the monarchy and will assess the “footprint” of the institution, The Times reported in June.
But Hodge, an ex-public accounts committee chair who has long probed royal finances, believes the system needs much wider reform.
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