Poundage facts for kids

Poundage was a special tax in English law. It was a fee added to goods that were brought into or sent out of England. This tax was usually one shilling for every pound of goods.

The main reason for poundage was to help pay for England's strong navy. The money collected from this tax helped the King or Queen build and keep ships. These ships protected the country from enemies and kept trade routes safe.

Poundage was often collected alongside another tax called tonnage. Tonnage was a tax specifically on every large barrel (called a "tun") of wine that was imported.

Poundage: A Tax Through History

This tax was first introduced in 1347 by Edward III of England. Later, in 1373, the Parliament officially approved it. For many years, the tax stayed the same.

After the Restoration in 1660, when King Charles II returned to the throne, Parliament started changing the tax rates. They adjusted the rates based on what the country needed at the time.

In 1414, under Henry V of England, Parliament made an important decision. They voted that every future king or queen could collect this tax for their entire life. This meant the monarch had a steady income from imports.

King Charles I and the Tax

When Charles I of England became king (1625–1649), the House of Commons tried to limit this royal tax. They voted to let Charles collect the tax for only one year, not for his whole life.

However, King Charles I continued to collect the tax anyway. He did this even though Parliament had not approved it for more than one year. This caused a big disagreement between the King and Parliament.

In January 1629, Charles spoke to Parliament about the tax. But members of the House of Commons were upset. A Member of Parliament named John Rolle had his goods taken away because he refused to pay the tax.

On March 2, 1629, King Charles I tried to end the Parliament meeting. But the speaker, Sir John Finch, was held in his chair by other members. They wanted to keep the meeting going. Because of this, Charles decided to completely close down Parliament. Sir John Finch and nine other members were put in prison.

The Tonnage and Poundage Act (1641)

After some conflicts called the Bishops' Wars, King Charles I called Parliament back. This new Parliament, known as the Long Parliament, started on November 3, 1640. It lasted for a very long time, until 1660.

In 1641, the Long Parliament passed the Tonnage and Poundage Act. This new law was very important. It set rules for all the taxes in the kingdom, including poundage on imports and exports.

King Charles II and the Tax

After the Long Parliament ended, a new Parliament was formed in 1660. It was called the Convention Parliament. This Parliament brought back the old rule.

They decided that the King of England could once again collect poundage for his entire life. So, from 1660 onwards, kings and queens could collect this tax again.

When Poundage Ended

The tax system changed significantly in 1787. The Customs and Excise Act 1787 replaced all the old customs duties, including poundage.

Instead of poundage, a new system was put in place. This system applied individual taxes, called tariffs, to different imported goods. The act had two parts. One part explained how all customs duties would be managed. The second part listed tables showing the exact tax amounts for many different products.

This created a clear list of all imported items and the specific tax for each one.

Poundage on Postal Orders

The word poundage is also used in a different way. In Britain and other places, it refers to a small charge. This charge is added when you buy a postal order.

A postal order is like a special check. You buy it at a post office to send money safely through the mail. The person you send it to can then cash it at another post office.

The poundage is simply the small fee you pay for this service when you buy the postal order.

See also

• History of the English fiscal system
• Tonnage and Poundage
• Charles I of England
• Charles II of England
• Long Parliament
• Convention Parliament

Images for kids

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  King Charles I (reign 1625–1649), portrayed from the studio of Anthony van Dyck, 1636

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  King Charles II (reign 1660–1685) in Garter robes by John Michael Wright

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  One penny poundage on a canteen order, a form of postal order