The Royal Family is set to be charged thousands of pounds a year under Rachel Reeves’ mansion tax, the Daily Mail can reveal.
Royal properties will not be exempt from the Chancellor’s tax grab, meaning the King could be on the hook for a sizeable bill.
Under Ms Reeves’ plans, owners of properties worth more than £2million will be stung with bills of at least £2,500 – rising to £7,500 for homes valued at more than £5million.
A number of royal residences are worth well in excess of £5million, including Buckingham Palace, Windsor Castle and Kensington Palace. But it is unclear which properties would be hit by the tax, which will contain exemptions. However, private homes including Sandringham are thought likely to be affected.
Other royal properties used privately include Bagshot Park in Surrey, the home of the Duke and Duchess of Edinburgh, and Forest Lodge in Windsor, the new home of the Prince and Princess of Wales.
Bagshot Park is estimated to be worth around £30million, while Forest Lodge is thought to be valued at £16million. Princess Anne’s Gatcombe Park in Gloucestershire could also be affected, as well as the King’s Highgrove House.
The Royal Family and King Charles is set to be charged thousands of pounds a year under Rachel Reeves’ mansion tax
The private royal residence of Sandringham House in Norfolk could be affected by the new mansion tax
Bagshot Park in Surrey, the home of the Duke and Duchess of Edinburgh, could also be subject to the levy
Buckingham Palace declined to comment but a source said that officials were ‘still working out the implications’ of the new tax. Part of the issue for the Royal Family is the complex nature of property ownership, with some homes owned by members of the family privately while others are leased from bodies such as the Crown Estate or the Duchy of Cornwall.
Ministers are consulting on reliefs and exemptions, including looking at whether those who are required to live in a property as a condition of their job, such as ambassadors, have to pay the tax.
The mansion tax will be split into four bands, with properties worth between £2million and £2.5million charged £2,500, those between £2.5million and £3.5million charged £3,500, those between £3.5million to £5million charged £5,000, and those over £5million charged £7,500.
It will be based on property values in 2026, but will not take effect until April 2028.
