Inheritance and Estate Taxes Can Impact Ordinary Taxpayers, Too

The news that King Charles III will not have to pay tax on assets that he inherits is making headlines this week. Some of the chatter suggests that a full tax exemption is a perk of being royal, while others have claimed that no exemptions apply to more ordinary taxpayers. Both premises are wrong.

It is true that King Charles will not have to pay inheritance tax on certain assets he inherited from his mother as a result of an understanding reached between the Royal Family and Inland Revenue in 1993. A 2013 memorandum of understanding further clarified and ...