somerset
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London Calling said:I HAV'ENT READ THIS YET BUT IT SEEMS TO PROVIDE A GOOD SYNOPSIS OF THE QUEEN TAXES.
lc
Queen Elizabeth II
The secrets of the Queen's finances are published
The Queen saved £20 million on inheritance tax after the death of the Queen Mother due to a secret deal with the British Treasury (finance ministry). In 2002 it was revealed that there are other secret deals between Queen Elizabeth and the Treasury.
The civil list (government payments to Buckingham Palace and the royal family) now costs the British taxpayer about £8.1 million each year. Total published payments to the head of state are about £35 million. This figure includes payments for items such as property maintenance and travel.
The civil list is now only paid to two individual members of the royal family, the Queen and Prince Philip - although see below. The £643,000 annual allowance to the Queen Mother ceased on her death in March 2002. Prince Philip receives about £359,000.
In 1993 it was announced that only the Queen, Prince Philip and the Queen Mother would receive civil list payments in the future. At the same time it was also announced then that other members of the royal family stopped benefiting from the civil list. The Queen also agreed to pay taxes on income and capital gains from 1993.
However, rather than abolishing the civil list payments to the other royals, taxpayer handouts to them continued and the Queen curiously paid an equivalent sum back to the Treasury.
This was said at the time to be a technical arrangement to cover administrative and legal difficulties of stopping the payments. But the Queen, it has now become clear, can set off the money she pays back to the Treasury against her own tax bill. In this way, the Queen saves income tax at the rate of 40% on payments of £249,000 to Prince Andrew; £141,000 to Prince Edward; £228,000 to Princess Anne; and £636,000 in total to the Duke and Duchess of Gloucester, the Duke and Duchess of Kent, and Princess Alexandra. Another £87,000 is paid by the taxpayer to Princess Alice, now over 100 years old and sister-in-law of the Queen Mother. It is then reimbursed to the Treasury by the Queen. The Queen is therefore likely to be saving £536,000 a year in income tax.
The savings may go up if, as seems likely, payments to the Prince Edward rise in the future to compensate Edward and his wife Sophie for abandoning their careers.
The total civil list payment in 2002 was £7.9 million. This is to cover other expenses of Buckingham Palace and the royal family. Internal Treasury files, released to the public record office in 2002 also disclosed details of a deal that ensured that MPs are not allowed to reduce the civil list - despite the fact that £35 million had not been spent.
According to the files, this agreement was specifically introduced to avoid "unduly exposing individual members of the royal family to too much embarrassment".
The papers also reveal that the government once upset the Queen by secretly vetoing a 100% "pay increase" for the Queen Mother. Edward Heath's cabinet in 1971 rejected a proposal from the palace for a pay rise for the Queen Mother that would have doubled her civil list payment from £70,000 to £140,000, saying it "might well lead to embarrassing criticism of the royal family".
Senior ministers said the amount had to be kept under the £100,000 figure and suggested £90,000 instead.
The papers record that when the Queen was told, "she reluctantly accepted the proposal but had pressed strongly for £95,000 instead of £90,000 on the grounds that it was important to maintain a substantial differential between the Queen Mother and the other royals.
Prince William
The British royal family
The Internet Forum
To put this in context, you would need a balancing document written by someone who supports the Monarchy (this one smacks of Private Eye), then once both have been read, take the middle point between the two and you are probably near the truth.