King Charles will not take up residence at Buckingham Palace after its decade-long refurbishment concludes next year, royal officials announced on Thursday, ending nearly two centuries of the London landmark serving as the British monarch's primary home. The decision marks a significant shift in royal tradition, as the palace has been the sovereign's official London residence since Queen Victoria ascended the throne in 1837.
In a separate disclosure, officials revealed that King Charles paid £12.9 million ($17.0 million) in tax in the 2024/25 financial year — the first time such a figure has been made public. This places him among Britain's top 100 taxpayers. The move is part of a broader promise by the royal family to increase financial transparency amid growing scrutiny and criticism following the death of Queen Elizabeth in 2022.
King Charles to Remain at Clarence House
The king's decision to stay at Clarence House, his longstanding London residence located near Buckingham Palace, comes ahead of the completion of a £369 million ($487 million) refurbishment project. The renovation, which began in 2017, was initially expected to ensure the palace remained the monarch's primary London residence. However, royal officials now confirm that Charles will not move in, though the palace will continue to serve as the ceremonial and administrative hub of the monarchy.
James Chalmers, the king's treasurer and Keeper of the Privy Purse, emphasized that Buckingham Palace will remain the primary venue for official functions, including hosting state visits. "It is and will remain 'monarchy HQ', the crown jewel of our national buildings, with the sovereign’s standard flying proudly from the roof whenever His Majesty is in London," Chalmers told reporters. Neither King Charles nor the late Queen Elizabeth had stayed overnight at the palace since 2019. The king will maintain private rooms there that could be used for accommodation if needed.
Public Access to Increase
Approximately 700,000 people visit Buckingham Palace each year, and Chalmers indicated that public access will be expanded, though he did not provide specific details. The palace has long been a major tourist attraction, and the increased access is expected to boost visitor numbers further.
Royal Tax Transparency
By law, the British monarch is not required to pay income, capital gains, or inheritance tax. However, King Charles has voluntarily paid tax since ascending the throne, following the precedent set by his mother after 1993. The disclosure of the exact amount paid is a new step toward transparency. Chalmers revealed that the king paid £11.7 million in tax in 2023/24 and more than £30 million in total since becoming king in 2022.
Charles receives a private income from the Duchy of Lancaster estate, which provided £25.2 million in 2025/26, as well as from other holdings and investments. This arrangement dates back to 1399. Additionally, the king receives the Sovereign Grant, a government payment based on a percentage of profits from the Crown Estate — a property portfolio whose revenues the monarch surrenders to state coffers in exchange for an annual sum to cover staff, palace maintenance, and travel costs.
Sovereign Grant Fluctuations
The Sovereign Grant has seen significant increases in recent years, driven by soaring profits from offshore windfarm license sales. It rose from £86 million in 2024/25 to £132 million the following year, and is set to reach £137.9 million in 2026/27. However, Chalmers announced that the grant will be cut for the first time in 2027/28, dropping to £100 million — a level that will remain until 2031/32. "This is not a blank cheque," Chalmers said, noting that safeguards are in place to ensure the amount remains proportional. Despite the cut, the grant will still be nearly £60 million higher than in 2016, when the funding formula was revised to finance the Buckingham Palace refurbishment.
Criticism of Royal Finances
Media reports in 2024 revealed that the Duchy of Lancaster and the Duchy of Cornwall — which provides income for heir-to-the-throne Prince William — had been charging rent to Britain's health service, army, and schools, sparking criticism. Further details about royal property arrangements emerged this month. Prince William's office stated that he paid £7.76 million in tax in 2024/25 and directed that £1.5 million in rent from a closed prison be given to the local community.
Despite these disclosures, critics argue that royal finances remain opaque. Graham Smith, chief executive of the anti-monarchy campaign group Republic, said: "Another hike for Charles, more spin and gloss and more misdirection on taxes. This is the way with royal reporting: the more they reveal, the more questions are raised."
