Owners of properties worth more than £2million will be hit with bills of at least £2,500

The Royal Family are set to be hit by Rachel Reeves’ mansion tax, with thousands of pounds due to be taken from the royal purse.

The Chancellor’s new tax bill could mean King Charles will have to fork out a sizeable sum as royal properties will not be exempt from the legislation.

The mansion tax proposes owners of properties worth more than £2million will be hit with bills of at least £2,500, rising to £7,500 for homes valued at more than £5million.

Several royal residences are worth far more than £5million, including Buckingham Palace and Windsor Castle.

The Royal Family is set to fork out thousands of pounds by Rachel Reeves’ mansion tax. | PA / GETTY

It is unclear which properties would be hit by the tax, which will include some exemptions.

Private homes are likely to be included, such as Sandringham, according to the Daily Mail.

The new home to the Prince and Princess of Wales and their three children, Forest Lodge in Berkshire, is valued at £16million, and Bagshot Park in Surrey is estimated to be worth around £30million.

Princess Anne’s Gatcombe Park in Gloucestershire could also fall victim to Labour’s tax grab, as well as His Majesty’s Highgrove House i the county.

The royal purse could be hit by the mansion tax.| GETTY

An issue for the Royal Family will be the complexities of property ownership, with some homes privately owned by family members while others are leased from bodies such as the Crown Estate.

The mansion tax will be split into four bands, with properties worth between £2million and £2.5million charged £2,500, those between £2.5million and £3.5million charged £3,500, those between £3.5million and £5million charged £5,000, and those over £5million charged £7,500.

It will be based on property values in 2026, but will not come into effect until April 2028.

GB News has contacted Buckingham Palace for comment.

Rachel Reeves announced her Budget on November 26. | GETTY

The news will be particularly bad news for Prince Edward, who has come under fire, after being branded “obscene” over his peppercorn rent deal at Bagshot Park.

Crown Estate documents show how the Duke of Edinburgh pays merely token rent for Bagshot Park, his 51-acre residence near Bracknell, following a £5million advance payment in 2007.

The revelation has sparked criticism that the property represents a taxpayer-funded subsidy for King Charles’s younger brother, as the Crown Estate’s revenues ordinarily flow to the public purse.

Campaigners argue the Bagshot Park estate could generate substantial income if leased commercially, questioning why the 15th-in-line to the throne receives such favourable terms for the property he has occupied for a quarter-century.

Prince Edward has faced criticism after his peppercorn rent deal at Bagshot Park.| GETTY

Edward’s 2007 agreement, executed through his company, Eclipse Nominees Limited, secured a 150-year lease of the Grade II listed property.

The arrangement permits the duke to possibly profit from selling the lease, provided that any future occupant demonstrates financial capacity to maintain the mansion.

This contrasts specifically with Andrew Mountbatten-Windsor’s lease, which restricts who can inherit Royal Lodge to just Sarah Ferguson and their daughters, Princesses Eugenie and Beatrice.

Edward’s lease contains no such familial limitations for his wife, the Duchess of Edinburgh and their children, Lady Louise Mountbatten-Windsor and James, Earl of Wessex.