King Charles III: Supporting Andrew Mountbatten Windsor After Title Changes
Overview of Financial Dependence
Andrew Mountbatten Windsor is set to rely heavily on his brother, King Charles III, for both housing and financial support following the removal of his “prince” title and a directive to vacate his London residence. Reports indicate that the King is personally financing Andrew’s new living arrangement and is making “appropriate private provision” as he transitions from the Royal Lodge.
The Sovereign Grant: Financial Foundations of the Royal Family
Understanding the Sovereign Grant
The Royal Family receives significant funding through the Sovereign Grant, which amounts to tens of millions annually. This funding supports official royal duties, but it isn’t the King’s sole source of income.
According to a report from the House of Commons Library, the increase in the Sovereign Grant has been influenced largely by renovation projects at Buckingham Palace. A spokesperson for the Palace has stated that once these projects conclude, a decline in the grant’s size is anticipated.
Calculation of the Sovereign Grant
The Sovereign Grant is derived from profits generated by the Crown Estate—a property conglomerate owned by the monarchy but administrated independently. This year, the Crown Estate held assets valued at £15 billion, encompassing prime London properties and extensive coastal lands.
Originally, the Sovereign Grant was calculated as 15% of the Crown Estate’s profits from two years prior. This percentage increased to 25% during the 2017-18 fiscal year to fund significant palace repairs but decreased again to 12% for the 2024-25 period. However, with substantial profits from new offshore wind farms, the Sovereign Grant is predicted to increase by £45 million for the upcoming fiscal year.
What Happens When Profits Drop?
Under the Sovereign Grant Act of 2011, if Crown Estate profits decline, the monarch is guaranteed to receive the same amount as the previous year, with the government compensating the difference. Over the last decade, the Crown Estate’s revenue has contributed £5 billion to public spending.
Key Uses of the Sovereign Grant
The Sovereign Grant facilitates various expenses related to the official duties of the King and other working royal family members. It primarily funds property maintenance and staffing, while also covering travel costs for royal engagements. In the last fiscal year, family members participated in nearly 1,900 official engagements.
In that same period, more than 93,000 guests attended 828 events at royal palaces, which included receptions and award ceremonies.
Additional Financial Avenues
The Duchy of Lancaster
In addition to the Sovereign Grant, King Charles III receives income from the Duchy of Lancaster, a historic estate that spans over 18,000 hectares in the UK, including central London properties. As of March 2025, it was valued at £679 million, generating annual profits of £24.4 million.
The Duchy of Cornwall
Another significant source of income is the Duchy of Cornwall, which provides revenue to the current Duke—currently Prince William. This estate, primarily located in south-west England, was valued at £1.1 billion and yielded £22.9 million in profits last year.
Both the King and Prince William benefit personally from profits generated by their respective duchies, although they cannot sell estate assets without reinvestment.
Royal Family Taxation Policies
Since 1992, both Queen Elizabeth II and King Charles III have voluntarily paid income tax and capital gains tax on their personal finances. While the duchies are exempt from corporation tax, both royals pay income tax on revenues they generate.
Members of the royal family are responsible for tax payments on income derived from privately owned assets. Notably, King Charles is exempt from inheritance tax on funds received following the death of the late queen due to the “sovereign to sovereign” rule established in 1993.
Security and Additional Costs
Security for the Royal Family is not covered by the Sovereign Grant and is typically managed by the Metropolitan Police at undisclosed costs. Significant royal events, such as the Queen’s funeral or King Charles’s coronation, have resulted in taxpayer expenses of approximately £162 million and £72 million, respectively.
Republic, a campaign group advocating for an elected head of state, argues that all royal-associated costs, including security, should be factored into the monarchy’s overall expenditure, estimating the total annual cost at approximately £510 million.
Conclusion
As Andrew Mountbatten Windsor adjusts to his new reality following the loss of his princely title, King Charles III’s supportive role comes to the forefront, highlighting the intricate financial web and public perception surrounding the Royal Family. The Sovereign Grant and the revenues from the Duchies continue to play substantial roles in sustaining the monarchy while inviting ongoing discussions about transparency and accountability.
This evolving narrative not only sheds light on the financial foundations of the monarchy but also engages the public in the broader debate about the relevance and cost of the royal institution in modern Britain.
