Saturday, 24 Oct 2020

How the Queen gets her money explained as monarch is worth a huge £350 million

The Royal family are one of the richest in the world and Queen Elizabeth is said to personally be worth £350 million.

The 94-year-old monarch is by far the richest member of the Royal family, but she's also said to be "very disciplined" when it comes to spending.

However, over the past couple of years her ranking on the Sunday Times Rich List has dropped – with the royal sliding down nearly 30 places since 2018.

She was number one on the list when it was first published in 1989, with a reported wealth of £5.2 billion (approximately £13 billion in today's value), which included state assets that were not hers personally.

The recently published 2020 rankings see the Queen take 372nd place with an estimated net worth in the hundreds of millions.

The Times revealed that it had docked £20 million off her estimated fortune since last year, due to the market crash affecting her investments.

Despite being worth so much, Royal finance expert David McClure previously claimed horses are the Queen's only big extravagance.

"This is quite an expensive hobby, at one stage she had a strong of about 20 thoroughbred horses, she had three studs, she had stables," he said.

"It was estimated in around 2000, it was costing about £600,000 a year just to run that."

However, she does make money back from horse racing and has won around £70million in prize money over the years for her racehorses, with 451 wins.

The Royal Collection, which includes thousands of historic works of art and the British Crown Jewels, is not owned by the Queen personally but is held in trust, as are her official residences, such as Buckingham Palace and Windsor Castle, and the Duchy of Lancaster, a property portfolio valued at £472 million in 2015.

Meanwhile, Sandringham House and Balmoral Castle are personally owned by the Queen.

The British Crown Estate—with holdings of £14.3 billion in 2019 – is held in trust and cannot be sold or owned by her in a personal capacity.

Some items in the royal collection do belong to the Queen however, including a royal stamp collection started by King George V, and certain personal real estate holdings.

Meanwhile, Forbes estimates that the British monarchy altogether is worth around £72.5 billion.

Most of the British monarchy's wealth comes from inherited lands and investments, but British taxpayers also support the royal family through a "sovereign grant" issued by the treasury.

In 2019, the sovereign grant amounted to £80 million. The basic agreement is that the Queen gets the grant in exchange for surrendering all profits from the Crown Estate – the family's massive portfolio of properties — to the government.

Every year, the Queen is given an amount of money equivalent to 25% of the Crown Estate's profits.

The sovereign grant pays for the family's travel, palace upkeep and utilities, and royal employee payroll, according to official royal family financial reports.

It's been reported that the grant doesn't cover costs of security and royal ceremonies — that money comes from a few other places.

The Queen's husband alone is reportedly worth somewhere around £23 million.

After the Sovereign Grant Act of 2011, Prince Philip received an annual Parliamentary annuity of about £385,082, which is for all of his public duties. He officially retired from his position in 2017, at the age of 96.

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