The Prince of Wales has paid a £42,000 stamp duty bill on his family's new Windsor residence, new documents have revealed.
Prince William and the Princess of Wales secured a two-decade lease on Forest Lodge, a Grade II-listed property situated within Windsor Great Park, where they settled with their three children during autumn 2025.
The agreement, which runs until at least 2045, designates the property exclusively as a "private family home... and for no other purpose".
Land Registry records reveal the couple's yearly rental obligation stands at £307,200, funded through the prince's private Duchy of Cornwall earnings.
Prince William paid a £42,000 stamp duty bill on the Waleses’ ‘forever home’
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Stamp duty typically applies to property purchases but can also be levied on high-value or extended rental agreements.
Because the Wales family's annual rent surpasses the £125,000 threshold, the tax became payable when the lease was finalised on July 21 last year.
Dan Neidle, founder of Tax Policy Associates, explained the calculation process to the Telegraph: "Normally, people are used to stamp duty being calculated on the purchase price for a house or flat, but when there's a significant amount of annual rent, you have to carry out a 'net present value' calculation that shows the current value of the stream of rental payments."
William and Catherine, Princess of Wales continue to rank among the most popular members of the Royal Family in national polling | GETTYThe levy is charged at one per cent on amounts exceeding the threshold, resulting in the estimated £42,000 payment.
The rental arrangement comprises £234,000 annually for the main residence, with an additional £73,200 covering three cottages within the grounds reserved for staff and security personnel.
Terms stipulate that rent will be reassessed every five years, with increases capped between three and five per cent.
Three separate valuations were commissioned before the agreement was reached, with Hamptons and Savills acting for the Crown Estate while Knight Frank represented the royal couple.
Workmen installing fencing on the perimeter of an exclusion zone around Forest Lodge
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Forest Lodge covered in scaffolding | PAThe negotiated rate represents a 50 per cent increase on what previous occupants paid, with the property formerly leased jointly to Fait Accompli chairman Alexander Fitzgibbons and Swedish businesswoman Cristina Stenbeck.
The disclosure arrives as the public accounts committee prepares to examine Crown Estate finances, following an inquiry launched in December that is expected to reveal Royal Household financial details for the first time.
The investigation was prompted by revelations that Andrew Mountbatten-Windsor had paid only a nominal "peppercorn" rent on Royal Lodge for two decades, sparking widespread criticism.
The former Duke of York, stripped of his titles by the King last year, had invested £8million renovating the 30-room Windsor property before relocating to Marsh Farm on the Sandringham Estate earlier this year.
The Wales family's market-rate arrangement stands in marked contrast to that controversy.