Queen Mother leaves her estate to the Queen

The Royal family faced criticism last night after it emerged the Queen Mother's staff will pay full inheritance tax on gifts from her will, while the Queen will pay nothing.

Buckingham Palace announced yesterday that the Queen Mother has left her entire estate, mainly works of art and other contents of her houses, to the monarch.

However, she also instructed that some bequests be made to members of her staff, including her steward, 66-year-old William Tallon, known as "Backstairs Billy".

As the Queen Mother left a so-called "sealed will", the details of its bequests will not be made public. Buckingham Palace said this was "normal practice" for a senior member of the family and followed the precedent set by Queen Mary.

Under a controversial agreement with John Major's Conservative government in 1993, the Queen will not pay any tax. Inheritance tax is payable at 40 per cent above a £250,000 threshold but the Queen has been exempted because the deal covers bequests from "sovereign to sovereign" or the consort of a sovereign to a reigning monarch.

Buckingham Palace is already under fire for suggestions that it is forcing Mr Tallon to retire and to leave Gate Lodge, a cottage in the grounds of Clarence House.

Last night, Alan Simpson, Labour MP for Nottingham South, said the Queen's decision not to pay tax would "create a new rift between the Royals and the people. It is simply outrageous."

The Palace also announced a shuffle of royal homes with the Prince of Wales expected to move from St James's Palace to Clarence House, while the Duke of York will move from Sunninghill to Royal Lodge, in Windsor.