Introduction
The British Royal Family is one of the oldest and most famous institutions in the world. Members of the family are often seen as symbols of wealth and prestige, with their lavish lifestyles being funded by the public purse. But how does the Royal Family make money? In this article, we will explore the various ways that members of the Royal Family generate income for themselves and for the British public.
Investment Profits
Financial instruments, such as stocks, bonds, and other securities, are an important source of income for the Royal Family. As reported by the BBC, the Queen’s personal fortune was estimated to be around £280 million in 2016. Much of this wealth comes from her investments in financial instruments, which have earned her a healthy return over the years.
The Royal Family also makes use of trusts and foundations to manage their investments. These trusts and foundations are essentially private companies, which can purchase and sell financial instruments on behalf of the Royal Family. It is estimated that these trusts and foundations are worth billions of pounds, and generate a significant amount of income for the Royal Family each year.
Real Estate Holdings
Another source of income for the Royal Family is their extensive real estate holdings. The family owns some of the most iconic properties in Britain, including Balmoral Castle in Scotland and Sandringham House in Norfolk. Both properties are open to the public and generate revenue from ticket sales and souvenir shops. In addition, the Royal Family also leases out land to farmers and other businesses, which provides them with a steady stream of income.
The Royal Family also earns money from the sale of products associated with their residences. For example, visitors to Balmoral Castle can purchase exclusive items such as shortbread and whisky, while those visiting Sandringham House can buy items such as postcards and mugs. These products help to generate additional income for the Royal Family.
State Funds
The Royal Family also receives funding from the British government in the form of the Sovereign Grant. This grant is paid out annually by the Treasury and is used to fund the family’s official duties and activities. According to the official website, the amount of the grant is determined by a formula which takes into account the Crown Estate’s net income and the costs of running the monarchy. In 2018-19, the amount of the grant was £82.2 million.
Tax Breaks
Members of the Royal Family are also exempt from paying certain taxes, including inheritance tax and capital gains tax. As reported by the Guardian, the exemption from inheritance tax alone could be worth up to £40 million to the Royal Family each year. While these exemptions benefit the Royal Family, they come at a cost to the public. The loss of tax revenue means that the government has less money to spend on public services, such as schools and hospitals.
Endorsements and Sponsorships
Finally, members of the Royal Family can also earn money from endorsements and sponsorships. Prince Harry, for example, has secured lucrative deals with companies such as Nike and Disney. The Royal Family also benefits from the sale of official merchandise, such as t-shirts and mugs featuring their likenesses.
By leveraging their fame and influence, members of the Royal Family can secure lucrative deals which generate significant amounts of income.
Conclusion
In conclusion, the British Royal Family generates income from a variety of sources, including investment profits, real estate holdings, state funds and tax breaks. They also benefit from endorsements and sponsorships, and the sale of official merchandise. By taking advantage of these income streams, members of the Royal Family are able to maintain their luxurious lifestyles.
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