What is the Duchy of Cornwall?
The Duchy of Cornwall is a well-managed private estate which funds the public, charitable and private activities of The Prince of Wales and his family. The Duchy consists of around
54,424 hectares of land in 23 counties, mostly in the South West of England.
The Duchy estate was created in 1337 by Edward III for his son and heir, Prince Edward, and its primary function was to provide him and future Princes of Wales with an income from its assets. It was traditional for many centuries for families with landed estates to settle the land and other assets in trust, so that each generation could live off the income but was unable to dispose of the assets.
Successive governments have concluded that the Duchy is an appropriate source of private income for the Monarchy. The principal activity of the Duchy is the sustainable, commercial management of its land and properties. The Duchy also has a financial investment portfolio.
The Duchy estate was created in 1337 by Edward III for his son and heir, Prince Edward, and its primary function was to provide him and future Princes of Wales with an income from its assets. It was traditional for many centuries for families with landed estates to settle the land and other assets in trust, so that each generation could live off the income but was unable to dispose of the assets.
Successive governments have concluded that the Duchy is an appropriate source of private income for the Monarchy. The principal activity of the Duchy is the sustainable, commercial management of its land and properties. The Duchy also has a financial investment portfolio.
Who is the Duke of Cornwall?
The Prince of Wales became the 24th Duke of Cornwall on The Queen's accession to the throne, in 1952. When His Royal Highness was 21, in 1969, he became entitled to the full income of the Duchy and took over its management.
Who manages the Duchy?
Dukes of Cornwall have traditionally managed their own estates. The current Duke is actively involved in running the Duchy and his philosophy is to improve the estate and pass it on to future Dukes in a stronger and better condition. The Prince of Wales himself takes a long-term stewardship approach and has proved that environmental and agricultural best practice are compatible with a sound financial return. For example, The Prince has helped to increase the Duchy’s capital value – to which he has no access - by 80% in the last six years.
However, because the Duke of Cornwall is not entitled to have or to spend any of the Duchy’s capital (but is only entitled to its annual income) the Duchies of Lancaster and Cornwall (Accounts) Act 1838 gave the Treasury a role to ensure that actions taken by any Duke when managing the Duchy cannot compromise the long term value of the estate. For this reason the Treasury must, for example, approve all property transactions with a value of £200,000 or more. The Duchy’s annual accounts are laid before the House of Commons and the House of Lords so that Parliament can be satisfied that the Treasury is fulfilling its statutory responsibilities.
The “board” of the Duchy is The Prince’s Council, which is chaired by His Royal Highness The Prince of Wales. It meets twice a year. The “chief executive” is The Secretary and Keeper of the Records. With the exception of the Secretary and Keeper of the Records, The Prince’s Council is a non-executive body which provides advice to His Royal Highness with regard to the management of the Duchy.
The management of the Duchy operates under the overall guidance of The Prince’s Council and subject to the Treasury supervision referred to above. Several members of The Prince’s Council also sit as non-executives on one or more of the Duchy sub-committees. The sub-committees presently operating are: Finance and Audit, Executive, Agricultural, Commercial & Development, and Remuneration. It is through this structure that the requirements of The Prince’s Council are delivered to the Executives and the resulting activities reported back The Prince’s Council.
Who is The Duchess of Cornwall?
Born Camilla Rosemary Shand on 17th July 1947, The Duchess of Cornwall married The Prince of Wales on 9th April 2005. Her Royal Highness acts in support of her husband, The Prince of Wales, in his work and role as Duke of Cornwall. The Duchess takes a close personal interest in the estate’s land and tenants and has accompanied His Royal Highness on a number of Duchy engagements. The Duchess is also Patron of a number of Cornish Charities.
What happens when there is no Duke?
When there is no male heir, the Duchy reverts to the Monarch, and the annual Civil List is reduced annually by the amount of the Duchy’s income.
Who will be the next Duke of Cornwall?
The charter establishing the Duchy ruled that each future Duke of Cornwall would be the eldest surviving son of the monarch - and the Heir to The Throne. When the current Prince of Wales accedes the throne, Prince William will become Duke of Cornwall.
Does the Duchy own all of Cornwall?
No. Of the Duchy’s 54,424 hectares, 7,134 (13 percent) are in Cornwall. The County of Cornwall covers 354,920 hectares, so the Duchy only owns 2 percent of the County.
Is the Duchy of Cornwall the same as the Duchy of Lancaster?
No. While the two Duchies have similarities, the management and control of the Duchy of Cornwall is entirely separate to that of the Duchy of Lancaster. The Duchy of Lancaster is a similar body responsible for managing an investment portfolio of land, property and financial investments. It also undertakes various administrative duties associated with the area of the historical County Palatine of Lancaster (today, primarily Lancashire, Greater Manchester and Merseyside). The Duchy of Lancaster’s main purpose is to provide income for the Sovereign as Duke of Lancaster. The Sovereign is not entitled to any of the capital assets of the Duchy. Established over 700 years ago, the Duchy of Lancaster is a body created under Charter.
Is the Duchy of Cornwall the same as Duchy Originals?
The Prince’s food company Duchy Originals is a separate organisation to The Duchy of Cornwall. The Prince started the company, which donates all of its profits to charity, in 1992. The Prince’s original aim in setting up the company was, firstly, to benefit the environment and soil health through a more sustainable approach to farming; secondly, to demonstrate the advantages of added value marketing and, thirdly, to raise money for charity and help farmers face what he felt was to be an uncertain future. Details about Duchy Originals can be found on the Duchy Originals website.
How is the financial security of the Duchy protected?
Because of the central and continuing role of the Sovereign and the Heir to the Throne, special safeguards are put into place for the Duchy of Cornwall, even though it is a private estate. In other words, because the Monarchy is a continuing institution and because it is right that it should have some private income and financial independence, controls are needed to ensure that one generation does not ‘sell the family silver’.
Under the 1337 charter, as confirmed by subsequent legislation, The Prince of Wales is not entitled to the proceeds or profit on the sale of capital assets, and only receives the annual income which they generate (which is voluntarily subject to income tax).
To ensure that the estate is protected effectively, and for the benefit of future generations, the Duchy’s ‘trust provisions’ have, over the years, been set in legislation, with the financial security of the Duchy overseen by HM Treasury. For example, all property transactions with a value of £200,000 or more are approved by the Treasury.
Under the 1337 charter, as confirmed by subsequent legislation, The Prince of Wales is not entitled to the proceeds or profit on the sale of capital assets, and only receives the annual income which they generate (which is voluntarily subject to income tax).
To ensure that the estate is protected effectively, and for the benefit of future generations, the Duchy’s ‘trust provisions’ have, over the years, been set in legislation, with the financial security of the Duchy overseen by HM Treasury. For example, all property transactions with a value of £200,000 or more are approved by the Treasury.
Why isn’t the Duchy of Cornwall audited by the National Audit Office?
Because it is a private estate rather than a publicly owned entity. It is, however, audited by independent external auditors.
Does the Duke of Cornwall pay tax on the income from the Duchy?
Yes. Like everyone else, The Prince of Wales pays income tax including on his income from the Duchy of Cornwall. The Prince of Wales also pays Capital Gains Tax on all capital gains which he receives; however, he does not receive any capital proceeds or gains from the Duchy of Cornwall because he is not entitled to them.
Does the Duchy pay corporation tax?
The Prince already pays income tax on the Duchy’s surplus. If the Duchy also paid corporation tax, the Prince would effectively be taxed twice on the same income. Only companies pay corporation tax; many other large organisations which are not companies pay income tax.
Does the Duke or Duchy of Cornwall pay capital gains tax?
The Prince pays capital gains tax but not in respect of the Duchy of Cornwall because he does not receive the capital gains (as he is not entitled to the capital assets). Although The Duchy is exempt from capital gains tax the Duchy’s Capital Gains have to be reinvested in the business and cannot be distributed. It is thus likely that no significant Capital Gains tax would be payable as a result of normal business tax exemptions.
Where does the Duchy’s surplus go?
Since it was established in the 14th century the Duchy's main purpose has been to provide an income, independent of the Monarch, for the heir apparent. The current Prince of Wales chooses to use a substantial proportion of his income from the Duchy to meet the cost of his public and charitable work. Last year The Prince of Wales helped to raise over £100 million for charitable causes. The Duchy funds the public and private lives of four members of the Royal Family - The Prince of Wales, The Duchess of Cornwall, Prince William and Prince Harry. Details of how the income from the Duchy is spent are given in The Prince of Wales’ Annual Review which can be seen here.
Does The Prince receive civil list funding?
The Prince does not receive Civil List funding. The Prince chooses to spend the majority of the Duchy income on his work and charitable activities.
How can I find the Duchy accounts?
The Duchy’s accounts, which are audited by a professional auditor, are, through the Treasury, laid before the House of Commons and the House of Lords so that Parliament can be satisfied that the Treasury is fulfilling its statutory responsibilities.
They are public documents and are available from this site here, larger public libraries, and The Stationery Office at and hard copies can be ordered from The Stationery Office.
The Prince of Wales also publishes details of his income and expenditure in his Annual Review (add link to our review on the website).
What should I do if I want to rent property from the Duchy?
The Duchy lets agricultural, residential and commercial property. The turnover of tenants is very low and vacancies are relatively rare. These are usually advertised in the local press or through local letting agents. If you aware of property that you want to rent you should contact the local Duchy office.
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