The royals dont cost the uk taxpayers a penny. We make far more from the income of the crown estates then is spent on their upkeep.
following taken from:
"Parliament meets much of the Sovereign's official expenditure from public funds. The Civil List is the sum that covers most expenses, including
those for staffing, state visits, public engagements, and official entertainment. The size of the Civil List is fixed by Parliament every ten years;
however, any money saved may be carried forward to the next ten year period. Thus, the Sovereign's Civil List expenditure in 2003 was approximately
£9.9 million. In addition, the Sovereign receives an annual Property Services Grant-in-Aid (£15.3 million for FY 2003–2004) to pay for the upkeep
of the royal residences, as well as an annual Royal Travel Grant-in-Aid (£5.9 million for FY 2003–2004). The Civil List and the Grants-in-Aid are
paid from public funds.
Formerly, the monarch met all official expenses from hereditary revenues, including the profits of the Crown Estate. In 1760, however, King George III
agreed to surrender the hereditary revenues of the Crown in return for the Civil List; this arrangement still persists. In modern times, the profits
surrendered from the Crown Estate have by far exceeded the Civil List and Grants-in-Aid provided to the monarch. For example, the Crown Estate
produced over £170 million for the Treasury in the financial year 2003–2004, whereas parliamentary funding for the monarch was less than £40
million during the same period. The monarch continues to own the Crown Estate, but cannot sell it; instead, the estate must continue to pass from one
Sovereign to the next.
Aside from the Crown Estate, the Sovereign also owns the Duchy of Lancaster. The Duchy is the monarch's private inherited property, unlike the Crown
Estate, which belongs to the monarch in an official capacity. Like the Crown Estate, however, the Duchy is held in trust, and cannot be sold by the
monarch. The revenues of the Duchy of Lancaster need not be surrendered to the Treasury; instead, they form a part of the Privy Purse, and are used
for expenses not borne by the Civil List. The Duchy of Cornwall is a similar estate held in trust to meet the expenses of the monarch's eldest
The Sovereign is subject to indirect taxes such as the value added tax (VAT), but is exempt from income tax and capital gains tax. Since 1993,
however, the Queen has voluntarily paid taxes on personal income. As the Civil List and Grants-in-Aid are used solely for official expenditure, they
are not taken into account when calculating taxes."