King Charles III will not move into Buckingham Palace after its decade-long renovation is completed next year, ending nearly 200 years of the iconic London residence serving as the primary home of the reigning British monarch, royal officials announced Thursday.
Instead, Charles will continue living at nearby Clarence House, where he has resided for years, while Buckingham Palace will remain the headquarters for the monarchy and the principal venue for state ceremonies, diplomatic receptions and official engagements.
The announcement came as royal officials also disclosed, for the first time, how much tax the king has voluntarily paid since ascending the throne, part of a broader effort by the royal household to increase financial transparency following the death of Queen Elizabeth II in 2022.
Buckingham Palace has been undergoing a £369 million ($17 million) modernization project since 2017, with workers replacing aging electrical wiring, plumbing, heating systems and other essential infrastructure throughout the historic building.
When the refurbishment began, officials anticipated the palace would continue serving as the monarch’s principal London residence, a role it has held since Queen Victoria established it as the royal home after becoming sovereign in 1837.
That plan has now changed.
James Chalmers, the king’s treasurer and keeper of the privy purse, said Buckingham Palace would remain the symbolic and administrative center of the monarchy even though Charles has chosen not to make it his permanent residence.
“It is and will remain monarchy HQ, the crown jewel of our national buildings, with the sovereign’s standard flying proudly from the roof whenever His Majesty is in London,” Chalmers told reporters.
Although Charles will continue living at Clarence House, officials said private rooms inside Buckingham Palace will remain available for overnight accommodation when required.
Neither Charles nor the late Queen Elizabeth had regularly spent nights at Buckingham Palace since 2019, largely because of the extensive renovation work.
Officials also indicated that the completion of the project will allow greater public access to parts of the palace, which already attracts around 700,000 visitors each year, although further details on expanded access have yet to be announced.
Alongside the housing decision, Buckingham Palace released new financial details about the monarch.
Under British law, the sovereign is exempt from paying income tax, capital gains tax and inheritance tax. However, Charles, following the precedent established by Queen Elizabeth in 1993, continues to pay income tax voluntarily.
Royal officials revealed that Charles paid £12.9 million ($17.04 million) in tax during the 2024-25 financial year, making this the first time the exact figure has been publicly disclosed.
According to Chalmers, the king paid £11.7 million during the previous financial year and has contributed more than £30 million in taxes since becoming monarch in 2022.
Much of Charles’ private income comes from the Duchy of Lancaster, a vast landed estate that has provided income to reigning monarchs for centuries. The estate is expected to generate approximately £25.2 million during the 2025-26 financial year, in addition to earnings from other investments and private holdings.
Separately, the monarch receives funding from the British government through the Sovereign Grant, which finances official royal duties, palace maintenance, staffing and travel.
The grant will rise to £137.9 million during the 2026-27 financial year before being reduced to £100 million beginning in 2027-28.
Chalmers said the reduction reflected the king’s own wishes and would remain in place through the 2031-32 financial year.
Although the revised amount remains substantially higher than before the Buckingham Palace renovation program began, Chalmers stressed that safeguards exist to ensure public funding remains proportionate.
“This is not a blank cheque,” he said.
The financial update also included new details about Prince William, the heir to the throne.
Officials said William voluntarily paid £7.76 million in tax during the 2024-25 financial year and directed that £1.5 million in rental income generated from a former prison property be returned to the surrounding local community.
The Prince of Wales and King Charles have both faced criticism over revenue generated through their private duchies, including rent charged to public institutions such as schools, hospitals and the military.
The latest disclosures appear intended to demonstrate greater openness as the monarchy continues adapting to public demands for increased accountability over royal finances while maintaining its constitutional and ceremonial role in British public life.
