 The sovereign is subject to indirect taxes such as value-added tax, and since 1993 the Queen has paid income tax and capital gains tax on personal income. Parliamentary grants to the Sovereign are not treated as income as they are solely for official expenditure. Republicans estimate that the real cost of the monarchy, including security and potential income not claimed by the state, such as profits from the duchies of Lancaster and Cornwall and rent of Buckingham Palace and Windsor Castle, is £ 334 million a year.
