Royal Financials: King Charles and Queen Camilla Will Not Live at Buckingham Palace after renovations are complete

King Charles III and Queen Camilla will not make Buckingham Palace their personal residence when the decade-long renovation of the building is completed next year, the Royal Household has confirmed.

The announcement, buried in the annual Sovereign Grant Report published today, marks a significant shift in how the Palace will function in the years ahead. Rather than serving as the monarch's London home—as it has for every sovereign since Queen Victoria—Buckingham Palace will instead operate as a ceremonial center, the primary workplace of the Royal Household, and a national heritage asset with expanded public access.

"His Majesty retains huge affection for Buckingham Palace and a deep respect for its role in royal and public life," a Palace spokesperson said. "It will remain a working home, but we are seeking to widen public access precisely to maximize the national benefit of a publicly-funded building."

The spokesperson added: "It will be a buzzing hive of royal activity in every other way."

The King and Queen are expected to continue residing at Clarence House, their London home since before the King's accession in 2022, while Windsor Castle remains their primary residence outside the capital.

The Numbers Behind the Crown

The Sovereign Grant Report for 2025-26 reveals that public funding for the Royal Family rose to £132.1 million ($166 million), increasing for the first time since 2021-22. The increase was benchmarked against the revenue of the Crown Estate, in line with the formula set out in the Sovereign Grant Act.

Over half of that total—£67.5 million ($85 million)—was allocated to the preservation and protection of the Occupied Royal Palaces, including the ninth year of the Buckingham Palace Reservicing Programme. The ten-year project has modernized essential building services within the Palace, including electrical wiring, plumbing, and heating systems that in some cases dated back to the 1950s.

The Royal Trustees, including the Prime Minister and the Chancellor, confirmed in March that the Sovereign Grant for 2026-27 would be set at £137.9 million ($173 million) to deliver funding for the final year of the Reservicing Programme. After that, funding will be reduced significantly.

The Report of the Royal Trustees concluded that funding for the next grant period, 2027-2032, will be reset to £99.9 million ($125 million) per year—a reduction of nearly £38 million annually once the Palace renovations are complete.

A Busy Year for the Royal Family

The report details a busy year of official engagements. The King and Queen undertook 708 engagements—an increase of more than 100 on the previous year. Together with the Prince and Princess of Wales and other working members of the Royal Family, a total of 2,273 engagements were completed across the UK and overseas.

Almost 97,000 guests attended 827 Palace events during the year.

Royal Tax Transparency

In a notable move toward transparency, Buckingham Palace has for the first time published details of the King's personal tax payments. The Palace confirmed that the amount of tax payable by His Majesty since his accession totals more than £30 million ($38 million).

In the two full tax years since becoming King, His Majesty's tax bill was £11.7 million ($15 million) in 2023-24 and £12.9 million ($16 million) in 2024-25.

This is the first time the Sovereign's personal tax payment has been published, alongside a new document summarizing the various sources of Royal Finances. The move is part of the Royal Household's commitment to greater transparency.

"While Royal finances can sometimes appear complex, the underlying system is clear in principle, structured in law and refined over time to ensure the Monarch can serve with independence, accountability and in the long-term interests of the nation," said James Chalmers, Keeper of the Privy Purse.

The King's Approach to Public Funding

The report notes that it was the King's wish, expressed in 2023, that the percentage of Crown Estate profits used in calculating the Sovereign Grant be reduced from 25% to 12%. This was done to account for an expected increase in Crown Estate income from offshore wind projects, with the King directing that the additional income be "primarily directed for the wider public good" rather than to the Royal Household.

Chalmers said: "Just as previous reigns helped steady the nation through moments of profound change, so too does the role of the modern monarchy continue to adapt to meet the demands of our evolving world, one in which the soft power of the Royal Family plays an increasingly vital diplomatic role.

"In this and every aspect of his duty, His Majesty is guided by a singular purpose—to serve with constancy, devotion and unwavering resolve. So, while much changes, our central principles remain: to deliver value for money and to support the Royal Family as they seek to help shape a better world, here in the United Kingdom, across the Commonwealth and beyond."

The full Sovereign Grant Report and supporting documents are available at royal.uk.