The most common and most likely answer to this crossword clue is the 6 letter word INDULT
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The straight part
We know that "Papal licence" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case papal licence = indult.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
Crossword Answer definitions
INDULT noun- A permission or privilege granted by the church authority that excepts an individual from what is otherwise a norm of church law, such as a release from monastic vows.