Tax

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. 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.

As The Prince already pays income tax on the Duchy’s surplus, the Duchy does not pay Corporation Tax. 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.