How the Queen and Prince Charles came to pay income tax

Back in June 1991, a programme I had made for Granada TV’s current affairs series, World in Action, entitled ‘The Firm’, was broadcast revealing much about the Royal Family’s wealth and tax arrangements. I had worked closely with Phillip Hall, whose book on the subject, ‘Royal Fortune’ was published the next year. Phil had spent a decade investigating the Queen’s wealth. At the time, the Queen and Prince of Wales were not paying income tax.  For most members of the public, who concerned themselves with such matters thought that not being required to pay tax was privilege of the Royals throughout history.. The most significant strand of the programme’s research was to show that there was no historical basis for the tax exemption and that tax had been paid by all the Queen’s predecessors except her father, George VI (d 1952) who had been the first monarch to have negotiated an exemption for income tax. (Modern income tax is generally accepted to have been first implemented in 1799).

Before 1760 the monarch met all official expenses from hereditary revenues, which included the profits of the Crown Estate (the royal property portfolio). King George III agreed to surrender the hereditary revenues of the Crown in return for payments called the Civil List. Our research showed that members of the royal family had subsequently negotiated a series of favourable tax and financial arrangements over the years. The number of members of the family paid out of the public funds to the Civil List had grown over the years.

We had also a considered attempt at estimating the Queen’s wealth – which is veiled in secrecy – and put her as one of the wealthiest women in the world worth £7.7bn. Her assets were and are enormous, though it fair to say, much is held on behalf of the nation like her astonishing collection of art including Michaelangelo drawings. some is purely commercial. Prince Charles has turned the massive land ownings of the Duchy of Cornwall into a lucrative business for the family.

I also wrote an article of the Sunday Independent ‘Secret Deals let Queen avoid her income tax’. (see attached pdf)

Directed by Brian Blake, the programme had a massive impact at the time including a Private Eye cover. It is probably the most impactful piece of journalism of my career with a direct cause and effect. It hit a public nerve.

As I recall the Royals were not very popular the time and later in 1991, as a result of a backlash, and the Queen urged Prince Charles to start discussions with the Treasury. The Queen herself was already consulting her advisers and the Treasury about her tax status.

In Autumn 1992 with the financial discussions still going on behind closed doors, the public were also concerned that the Queen wanted public funds to repair Windsor Castle which suffered a devastating fire in Autumn 1992. The Daily Mail, unaware of the behind-the-scenes negotiations, gently proposed a public gesture. “We sympathise with The Queen. Of course, we do. But these are hard times for most people. Many of them have a truly horrid year. They have lost their livelihoods….Even been driven from their homes. The Queen should pay some tax on her income. And fewer member of her family should be a charge on the Civil List. She should offer to contribute to restoring the fabric of Windsor Castle.’ At the time, a poll carried out by Numbers Market Research for The Independent on Sunday found that nearly eight out of 10 people believed the Queen should pay tax.

Six days after the Windsor Castle fire, the then PM John Major made a surprise announcement in the House of Commons that the Queen and the Prince of Wales had volunteered to pay tax on their private incomes and that the Queen would reimburse the Civil List annuities of five lesser members of the Royal Family. John Major informed Parliament that the National Audit Office would be looking into expenditure on the royal palaces.

1992 was dubbed the Queen’s ‘annus horribilis’ We estimated the Queen’s income tax liability to be £7.2m per annum. Ever since the Queen and Prince Charles has paid income tax on the private income and there are less members of the Royal Family on the Civil List.

The question of the Royal Family’s wealth and the delicate relationship between the Civil List – payments to the Royal Family, what they are personally worth and how much personal wealth they derive from the land they hold and what exactly do they hold on behalf of the Nation, are still percolating. I expect to see new revelations before long.

PL story – follow up to last week’s Indonesia exclusive –

Survivors of 1965 Indonesia massacres urge UK to apologise

After Observer report, families say the move would help heal country’s wound

PL: We’ve got a big two-parter in The Observer on UK involvement in the Indonesia mass murder of the 1960s.

Revealed: how UK spies incited mass murder of Indonesia’s communists

https://www.theguardian.com/world/2021/oct/17/revealed-how-uk-spies-incited-mass-of-indonesias-communists

Slaughter in Indonesia: Britain’s secret propaganda war

https://www.theguardian.com/world/2021/oct/17/slaughter-in-indonesia-britains-secret-propaganda-war

Nice review of my spy book by Professor Richard Keeble

“Given the importance of the intelligence services in shaping the news agenda it is a matter of serious concern that the links between hacks and spooks have been so little studied in the academy. Paul Lashmar’s latest text helps fill the
gap in masterly fashion.

He is the ideal person to write this study. An award-winning investigative reporter and now head of the prestigious Journalism programme at City, University of London, Lashmar has covered many of the recent controversies outlined
here. Since the early 1980s, his career has included spells at the Observer, Granada Television’s Work in Action, the Independent and the Independent on Sunday. The bibliography at the end includes 24 texts he has sole-authored
plus another 21 he jointly authored between 1983 and 2018 – this alone giving an idea of the depth and breadth of his journalism in this area.

But Lashmar’s investigative background means that he is able to enliven the text throughout with some engaging personal anecdotes and insights into changing journalist routine.”

“This is, in fact, a massively detailed, original and thought-provoking study that should be required reading for all students and teachers of journalism, media, communication, intelligence studies and politics”

The full detailed review is in Vol 18. No1/2 2021 OSSN 1742-0105 and can be found at: http://www.ethical-space.co.uk

‘Investigative Journalism’ 3rd edition published this week, co-edited by Hugo de Burgh and Paul Lashmar

This third edition maps the new world of investigative journalism, where technology and globalisation have connected and energised journalists, whistle-blowers and the latest players, with far-reaching consequences for politics and business worldwide. 
In this new edition, expert contributors demonstrate how crowdsourcing, big data, globalisation of information, and changes in media ownership and funding have escalated the impact of investigative journalists. The book includes case studies of investigative journalism from around the world, including the exposure of EU corruption, the destruction of the Malaysian environment, and investigations in China, Poland and Turkey. From Ibero-America to Nigeria, India to the Arab world, investigative journalists intensify their countries’ evolution by inquisition and revelation.
This new edition reveals how investigative journalism has gone digital and global. Investigative Journalism is essential for all those intending to master global politics, international relations, media and justice in the 21st century.

UCL apologises for supporting Eugenists.

I critique Galton’s use of composite photography to create cultural constructs, which demonised or ‘‘othered’’ people in my ‘Mugshots’ paper. Lashmar, P. (2014). How to humiliate and shame: A reporter’s guide to the power of the mugshot. Social Semiotics, 24(1), pp. 56–87. https://www.ucl.ac.uk/news/2021/jan/ucl-makes-formal-public-apology-its-history-and-legacy-eugenics

PL’s follow-up story on Richard Drax MP’s wealth from The Observer and Sunday Mirror.

You might find my follow-up story on Richard Drax MP of interest (The Observer and Sunday Mirror). Please share especially to Dorset friends .

Reparations row MP adds plantation to his register of members’ interests

Tory Richard Drax, who represents South Dorset, has corrected a number of ‘errors and omissions’ in his parliamentary list

https://www.theguardian.com/world/2021/jan/03/reparations-row-mp-adds-plantation-to-his-register-of-members-interests-richard-drax

Tory MP admits owning former slave plantation where his family made millions

EXCLUSIVE Richard Drax is the wealthiest landowner in the House of Commons – and worth as much as £150 millionhttps://www.mirror.co.uk/news/politics/tory-mp-admits-owning-former-23252766