No, King Charles III won't pay any inheritance tax on his massive gain

In 1993, Queen Elizabeth II and her heir, then-Prince Charles, reached a deal with the government in which they agreed to voluntarily pay taxes — but to be exempt from an inheritance tax. Mother and son are seen here in 2019 in London. (Paul Edwards /WPA Pool / Getty Images)

King Charles III has ascended to the U.K. throne, but he won't have to pay the U.K.'s inheritance tax on the massive wealth he inherits from his late mother, Queen Elizabeth II. That's because of a deal the royals made with the government nearly 30 years ago.

Regular citizens must pay the standard inheritance tax rate of 40% on any part of an estate that's valued above a threshold of 325,000 pounds (about $374,000). There are common exceptions, such as money left to a spouse or a charity.