BUCKINGHAM Palace will cease to be the British monarch's primary residence for the first time in almost two centuries after His Majesty King Charles III decided to remain at Clarence House even after the landmark's £369 million refurbishment is completed next year.
The announcement, made by royal officials on Thursday, marks a significant departure from a tradition dating back to 1837, when Queen Victoria established Buckingham Palace as the official London residence of the sovereign.
Instead, the palace will continue to serve as the ceremonial and administrative headquarters of the monarchy, hosting state visits, investitures and other official engagements.
"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," Reuters quoted James Chalmers, the King's Treasurer and Keeper of the Privy Purse saying on Friday.
The extensive refurbishment, which began in 2017, involves replacing ageing electrical wiring, plumbing and heating systems throughout the historic building.
Neither King Charles nor the late Queen Elizabeth II has stayed overnight at Buckingham Palace since 2019. While the King will retain private accommodation within the palace, Clarence House will remain his principal London residence.
Royal officials also announced that public access to Buckingham Palace will be expanded after the refurbishment, although further details have yet to be released. The palace currently attracts about 700,000 visitors each year.
Separately, the Royal Household disclosed for the first time that King Charles voluntarily paid £12.9 million in tax during the 2024/25 financial year, placing him among the United Kingdom's highest taxpayers.
Although the British monarch is exempt by law from paying income tax, capital gains tax and inheritance tax, Charles has continued the voluntary tax-paying practice introduced by Queen Elizabeth II in 1993.
Officials said the King paid £11.7 million in tax during the previous financial year and more than £30 million since ascending the throne in 2022.
The King receives private income primarily from the Duchy of Lancaster estate, which is expected to generate £25.2 million during 2025/26, in addition to investment income and other assets.
Royal officials also confirmed that the Sovereign Grant, which funds official royal duties, palace maintenance, staffing and travel, increased from £86 million in 2024/25 to £132 million in 2025/26, largely due to higher Crown Estate revenues driven by offshore wind farm leases.
The grant is projected to rise to £137.9 million in 2026/27 before being reduced to £100 million from 2027/28, a move officials said reflected the King's own wishes.
"This is not a blank cheque," Chalmers said, adding that safeguards remain in place to ensure public funding remains proportionate.
The disclosures follow heightened scrutiny of royal finances after reports last year revealed that the Duchy of Lancaster and the Duchy of Cornwall charged rent to public bodies, including the National Health Service, the military and schools.
Prince William's office separately disclosed that he paid £7.76 million in tax during 2024/25 and directed £1.5 million in rental income from a former prison site towards the local community.
Despite the unprecedented disclosures, anti-monarchy campaign group Republic argued that greater transparency is still required.
"Another hike for Charles, more spin and gloss and more misdirection on taxes," said Republic chief executive Graham Smith. "This is the way with royal reporting: the more they reveal, the more questions are raised." - June 26, 2026
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