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Calls for King Charles to Be Taxed on Property Transactions in Scotland
In a notable move, opposition leaders in Scotland are advocating for the removal of King Charles’s exemption from paying stamp duty on his property acquisitions. The Scottish Green Party has introduced amendments to a housing bill that would mandate the king to pay taxes on new property purchases in the same manner as other buyers.
The tradition of tax exemption for British monarchs has been long-standing, allowing them to avoid taxes on personal income, investments, inheritances, property transactions, and business profits accrued from their extensive private estates.
Despite this exemption, King Charles has chosen to pay the standard income tax rate on portions of his personal income, as well as capital gains tax. The royal household refrained from commenting on the Scottish Green proposals but noted that the king voluntarily pays local property rates.
King Charles’s property portfolio in Scotland is significant, encompassing over 80 residences throughout his various estates, including Balmoral and Delnadamph in the Highlands, along with Balmoral Castle, his holiday home at Birkhall, and part of a Georgian townhouse located in Edinburgh.
He inherited these properties following the passing of Queen Elizabeth II but did not incur inheritance tax on them. The total value of these estates and homes is conservatively estimated at a minimum of £80 million and is managed by a private trust on his behalf.
Ross Greer, the Scottish Greens’ spokesperson on finance and a self-identified republican, articulated the belief that the royal family should contribute taxes like everyone else. “The Scottish Greens would hardly hesitate to abolish the monarchy, but even those in favor of it must recognize that this exemption is an unwarranted privilege for someone well-off enough to contribute to public services,” he stated.
Greer’s amendment seeks to eliminate a specific clause within the Land and Buildings Transaction Tax (Scotland) Act 2013, which governs property sale taxes in Scotland. The clause currently states, “Nothing in this act affects [his] majesty in [his] private capacity.”
A spokesperson for the Scottish government confirmed that Greer’s proposed amendments would be reviewed by Members of the Scottish Parliament (MSPs) during the committee stage of the local government bill’s evaluation at Holyrood.
In the Scottish taxation system, homebuyers purchasing properties valued over £145,000 are subjected to a transaction tax ranging from 5% to 12%, based on the property’s total cost, in addition to an extra levy for second homes or rental investments.
Such discussions and votes regarding royal taxation are infrequent within UK legislatures; however, Holyrood has gradually begun to reassess the constitutional privileges granted to the royal family. Notably, ministers are now required to inform MSPs early on if the king has been given the opportunity to review new legislation beforehand, often a measure to ensure the monarch is exempt from that law — a process known as crown consent.
This scrutiny follows a report by The Guardian, which revealed that the former queen had reviewed at least 67 pieces of Scottish legislation, with admissions from Scottish civil servants that some legislation had been altered to secure her assent.
Source
www.theguardian.com