The royals usually keep arguments behind closed doors, but there have been some telling moments caught on camera..

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Daniella Real All About The Money Youtube

The royals usually keep arguments behind closed doors, but there have been some telling moments caught on camera.

Meghan and Harry’s decision to step down as senior royals has unintentionally shone a light on a very mysterious area of the monarchy – its finances. Picture: LEAL-OLIVAS / AFPSource:AFP

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$13,587,949.61 … that is how much money the Queen has reportedly made out of horse racing over the past 30 years.

For most people, that would be an unimaginable fortune, but for Her Majesty, it’s barely a drop in the ocean.

The royal family’s finances have long been something of an enigma, partially hidden from public view and shrouded in secrecy, but this week Harry and Meghan, the Duke and Duchess of Sussex’s shock decision to quit as frontline members of the royal family has sparked renewed focus on the Windsor family finances. Namely, quite how much money do they actually have? And where does it all come from?

The answers to those questions are far from simple to answer. The Queen, and her family’s financial arrangements, are highly complex, often murky, and some aspects have never been made public.

Harry and Meghan, writing on their recently launched website, revealed that 5 per cent of their income comes from the Sovereign Grant while the remaining 95 per cent comes from Prince Charles. Having made the historic decision to step down as “senior” working members of the royal family, they have announced they will no longer be accepting the Sovereign Grant, while the Prince of Wales’ willingness to dole out a very generous annual allowance to the couple is far from certain.

The finances of the royal family are, controversially, not subject to the same rules as other people. Picture: Tolga Akmen / AFPSource:AFP

Getting the full measure of the royal family’s finances is nearly impossible, largely because they face different rules.

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“There’s a residual deference in the royal family, which has meant that they haven’t always faced the awkward questions, which as they ought to have done,” former MP and Privy Council member Norman Baker told news.com.au in an interview conducted last year.

“For example, they are largely exempt from the Freedom of Information Act. They don’t have the same requirements for declaration of gifts as say politicians do … and they mix and match private and public in a way that is quite improper in public life.”

Says Baker: “All of them are worth 20 billion pounds, at least that’s a very, very conservative estimate. They are all fabulously wealthy.”

Not everyone agrees with such an estimate. “They are millionaires, not billionaires,” David McClure, an author who has written about royal finances, told Forbes.

Either way, there is no escaping the fact the Windsors are seriously rich. Here’s where that all comes from.

SOVEREIGN GRANT 101

Every year the Queen receives a fixed percentage (25 per cent) of the net income from the Crown Estate (which owns vast tracts of London real estate and land around the UK), which last year amounted to a payment of $155 million (the rest of the revenue goes to the Treasury).

That money is used to pay for upkeep of the royal palaces (for example, the $300 million renovation that Buckingham Palace is undergoing) and for travel and office expenses of working royals (excepting security costs, which are not paid for out of grant money).

However, the Sovereign Grant was used to transform Frogmore Cottage from a rundown building into the Sussexes’ new home (though fixtures and furnishings were paid for by the couple).

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Currently, it is estimated that three of Harry and Meghan’s office staff are paid for by the grant, and it is not known if they will now personally pick up the tab for these roles.

Different members of the royal family face different arrangements. For example, while Princess Anne receives Sovereign Grant money to pay for her official work expenses, she funds the upkeep of her home Gatcombe Park independently rather than from the grant.

Harry and Meghan’s website put the spotlight back onto the royal family’s finances. Picture: Kirsty Wigglesworth – Pool/Getty ImagesSource:Getty Images

THE DUCHY OF CORNWALL

So where does the other 95 per cent of Harry and Meghan’s moolah come from? The Duchy of Cornwall aka the Bank of Dad. Dating back to the 14th century, the Duchy has long been the possession of whoever is the Prince of Wales, the idea being the vast rural land holding would help keep a future king in the style to which he wanted to be accustomed.

https://sharingtree.amebaownd.com/posts/21605210. Charles took control of the Duchy in 1969 when he became the Prince of Wales and in that time has transformed the 500 square kilometre estate into a thriving, highly successful business. Last year the Duchy earned Charles $40 million, out of which he, in turn, gives princes William and Harry (and their wives) a combined $9.4 million.

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However, Charles has faced criticism over the Duchy’s financial arrangements. Baker, writing in his 2019 book And What Do You Do?, reports that while Charles pays tax on his income, he is allowed to make deductions for his 28 personal staff and Camilla’s clothing and jewellery (interestingly, the Duchy also audits itself).

Basically, this is where Harry and Meghan get the money from to buy all of those $2000 hats and to pay for private jets for mini-breaks in Ibiza. However, will Daddy will keep handing over money to his son and daughter-in-law now they have flown the coop? That remains to be seen.

THE DUCHY OF LANCASTER

The Duchy of Lancaster is the Queen’s private estate and is valued at $1 billion, according to the most recent accounts. It earned her $40 million in the most recent financial year.

The Duchy owns a huge swath of real estate in central London (such as part of famed Regent St) along with land in Lancashire, Yorkshire, Cheshire, Staffordshir