King Charles faces questions over Scottish residence taxes

King Charles has been asked to clarify how much tax he pays on two of his Scottish residences, Balmoral Castle and the Palace of Holyroodhouse, following changes to council tax rules affecting second homes.

Aberdeen Central MSP Jack Middleton has written to the King seeking clarification over whether the royal residences are subject to the new council tax premiums being introduced in Scotland.

The issue comes after local authorities announced significant changes to the amount of council tax charged on second homes. Under the new rules, properties that qualify as second homes can face substantially higher charges, depending on the council area in which they are located.

Aberdeenshire Council introduced a 200% council tax premium on second homes from September. This means properties affected by the policy can be charged at three times the standard council tax rate. Balmoral Castle, the King’s well-known Scottish residence in Aberdeenshire, would fall under the area covered by the new rules if it is treated as a second home for council tax purposes.A separate change is also planned in Edinburgh. Edinburgh City Council is set to introduce a 300% premium on second homes, meaning qualifying properties could be charged four times the standard council tax rate. The Palace of Holyroodhouse, the King’s official Scottish residence in Edinburgh, could therefore face the higher charge if the property is considered liable under the new arrangements.

Middleton’s letter raises questions about how the council tax rules apply to the two royal properties. He argued that Balmoral and Holyroodhouse are separate from the King’s primary residence at Clarence House and therefore should be considered secondary residences for the purposes of the new tax policies.

The inquiry has placed attention on the tax arrangements surrounding some of the monarchy’s most prominent properties in Scotland. However, it remains unclear whether the King has responded to the letter or whether any special arrangements apply to the residences under existing rules.

Balmoral Castle has been closely associated with the British royal family for generations and holds particular personal importance for King Charles and other members of the family. The estate in Aberdeenshire has traditionally been used as a private summer retreat by the royals.

The late Queen Elizabeth II was especially fond of Balmoral and regularly spent part of her summer there. During her visits, she was known to enjoy the estate’s countryside, horseback riding and drives around the surrounding area. Balmoral became one of the places most strongly associated with her private life away from official royal duties.

PFollowing Queen Elizabeth II’s death in September 2022, King Charles and Queen Camilla have continued to spend time at Balmoral. The King also has a long-standing connection with Birkhall, a private residence on the Balmoral estate where he has traditionally stayed during visits to Scotland.

The Palace of Holyroodhouse has a different role within the royal family. Located in Edinburgh, it serves as the monarch’s official residence in Scotland and is used during royal visits and official engagements. The palace is also closely connected with major ceremonial events involving the monarchy in Scotland.

The council tax changes have now raised questions about whether royal residences such as Balmoral and Holyroodhouse should be treated in the same way as other second homes. The answer could determine whether the properties are affected by the substantial premiums being introduced by local councils.

For now, there has been no public confirmation of the amount of council tax, if any, that King Charles will pay under the new rules for either residence. Further clarification from the King or relevant authorities could provide more detail on how the policies apply to the royal properties.