This document sets out the processes through which HM Treasury and the Duchy of Cornwall estate (The Duchy) fulfil the legal requirements for management of the estate.
Legal authority
2. The relevant legislation is the Duchies of Lancaster and Cornwall Management Act 1838 and the Duchy of Cornwall Management Acts 1863 and 1982.
3. The Duchy of Cornwall is a private estate established to provide an income for the present and future Dukes of Cornwall, independent of both the Crown and public support. The Duchy does not manage public money (though it may qualify for assistance available to other comparable organisations).
4. Under the Duchy of Cornwall Management Acts the Treasury must seek to ensure that the estate’s capital is protected for future generations. The Treasury’s specific remit is to:
• direct the form of the Duchy’s annual accounts;
• present the accounts to Parliament;
• approve property transactions under s11 of the 1863 Act;
• approve other transactions undertaken for the good of the estate under s7 of the 1982 Act.
Accounts
5. The Treasury sets an Accounts Direction reproduced within the Duchy accounts determining the form and content of the Duchy’s accounts. It is updated from time to time, in consultation with the Duchy, to ensure that current good practice and accounting standards are followed.
6. The Duchy’s accounts include information on Treasury consents under the 1863 and 1982 Acts for transactions that have been granted in that financial year.
Financial oversight
7. Because the Duchy is a private estate and does not manage public money, the Treasury’s oversight is limited as defined by the law. To understand how transactions align to the Duchy strategy, the Treasury receives a copy of the annual asset strategy but does not determine nor second guess the estate’s strategic approach. The Duchy does not have an accounting officer.
8. The Duchy’s Finance Director and the Treasury Officer of Accounts hold bi-monthly meetings, with additional meetings arranged as business requires. These meetings discuss any foreseeable large property transactions which may call for specific Treasury approval. In addition, the Duchy provides additional information for context such as information on the Duchy’s medium term strategic plan and its budget for the year ahead. The Treasury checks that the Duchy’s approach is financially sound and capable of maintaining the capital value of the estate for future Dukes.
Legal authority
2. The relevant legislation is the Duchies of Lancaster and Cornwall Management Act 1838 and the Duchy of Cornwall Management Acts 1863 and 1982.
3. The Duchy of Cornwall is a private estate established to provide an income for the present and future Dukes of Cornwall, independent of both the Crown and public support. The Duchy does not manage public money (though it may qualify for assistance available to other comparable organisations).
4. Under the Duchy of Cornwall Management Acts the Treasury must seek to ensure that the estate’s capital is protected for future generations. The Treasury’s specific remit is to:
• direct the form of the Duchy’s annual accounts;
• present the accounts to Parliament;
• approve property transactions under s11 of the 1863 Act;
• approve other transactions undertaken for the good of the estate under s7 of the 1982 Act.
Accounts
5. The Treasury sets an Accounts Direction reproduced within the Duchy accounts determining the form and content of the Duchy’s accounts. It is updated from time to time, in consultation with the Duchy, to ensure that current good practice and accounting standards are followed.
6. The Duchy’s accounts include information on Treasury consents under the 1863 and 1982 Acts for transactions that have been granted in that financial year.
Financial oversight
7. Because the Duchy is a private estate and does not manage public money, the Treasury’s oversight is limited as defined by the law. To understand how transactions align to the Duchy strategy, the Treasury receives a copy of the annual asset strategy but does not determine nor second guess the estate’s strategic approach. The Duchy does not have an accounting officer.
8. The Duchy’s Finance Director and the Treasury Officer of Accounts hold bi-monthly meetings, with additional meetings arranged as business requires. These meetings discuss any foreseeable large property transactions which may call for specific Treasury approval. In addition, the Duchy provides additional information for context such as information on the Duchy’s medium term strategic plan and its budget for the year ahead. The Treasury checks that the Duchy’s approach is financially sound and capable of maintaining the capital value of the estate for future Dukes.
Transactions requiring Treasury consent under Section 11 of the 1863 Act or Section 7 of the 1982 Act
9. The Duchy has consent for property transactions below £800k for Section 11 transactions and £500k for Section 7 transactions, other than transactions of any size to a related party or which the Duchy judges otherwise contentious. These, along with any proposed transaction above the relevant financial threshold cannot proceed without Treasury consent.
10. The Duchy provides the Treasury with appropriate notice of transactions where it will be seeking consent so that business is conducted in an efficient manner
11. When assessing proposed large property transactions under s11 of the 1863 Act, the Treasury seeks evidence that the terms are commercial. Helpful indicators include:
• for sales, competition among potential purchasers and at settlement prices in line with estate agents’ guide prices;
• for investment and development projects, actual or expected returns at market levels.
12. Where an investment transaction is part of a larger programme, the Treasury seeks evidence that the project overall will satisfy the Duchy’s statutory duties striking an appropriate balance between the interests of the present and future Dukes. Therefore, in any development phase, short term costs and risks may be acceptable if they are likely to deliver a longer term commercial return.
13. In the case of large transactions proposed under s7 of the 1982 Act, the Treasury needs to be satisfied that each investment is genuinely conducive to the maintenance of the capital assets within the estate. Where a transaction affects land, s7(3) of the 1982 Act requires that the Duchy shall also take into account any effect the transaction would have on persons living on, or in the vicinity of, the land. The Treasury always looks for evidence that such investments form a minor part of the Duchy’s programme since they may reduce the Duchy’s short term commercial returns.
14. If the Treasury requires additional assurance about a transaction, it may ask the Duchy to obtain independent evidence, e.g. a valuation from a suitable unconnected expert. The Treasury may also seek independent advice.
15. If a transaction involves a related party, the Treasury looks for evidence that the transaction is being conducted in line with normal market conditions.
Treasury consent, in the form of a warrant signed by two Lords Commissioners must be obtained before a transaction goes ahead.
Disagreement
16. Were the Treasury to refuse approval for a transaction then that transaction cannot proceed unless the Duchy can produce further information that subsequently convinces the Treasury that the transaction will support the capital asset value of the estate.
Duty of Confidence
17. All discussions are held under a duty of confidence in order to enable a free and frank exchange and protect the commercial interests of both the Duchy and its counterparties.
Review
18. This memorandum is reviewed every two years. An up to date version is published on the Duchy websites.
1 April 2026
9. The Duchy has consent for property transactions below £800k for Section 11 transactions and £500k for Section 7 transactions, other than transactions of any size to a related party or which the Duchy judges otherwise contentious. These, along with any proposed transaction above the relevant financial threshold cannot proceed without Treasury consent.
10. The Duchy provides the Treasury with appropriate notice of transactions where it will be seeking consent so that business is conducted in an efficient manner
11. When assessing proposed large property transactions under s11 of the 1863 Act, the Treasury seeks evidence that the terms are commercial. Helpful indicators include:
• for sales, competition among potential purchasers and at settlement prices in line with estate agents’ guide prices;
• for investment and development projects, actual or expected returns at market levels.
12. Where an investment transaction is part of a larger programme, the Treasury seeks evidence that the project overall will satisfy the Duchy’s statutory duties striking an appropriate balance between the interests of the present and future Dukes. Therefore, in any development phase, short term costs and risks may be acceptable if they are likely to deliver a longer term commercial return.
13. In the case of large transactions proposed under s7 of the 1982 Act, the Treasury needs to be satisfied that each investment is genuinely conducive to the maintenance of the capital assets within the estate. Where a transaction affects land, s7(3) of the 1982 Act requires that the Duchy shall also take into account any effect the transaction would have on persons living on, or in the vicinity of, the land. The Treasury always looks for evidence that such investments form a minor part of the Duchy’s programme since they may reduce the Duchy’s short term commercial returns.
14. If the Treasury requires additional assurance about a transaction, it may ask the Duchy to obtain independent evidence, e.g. a valuation from a suitable unconnected expert. The Treasury may also seek independent advice.
15. If a transaction involves a related party, the Treasury looks for evidence that the transaction is being conducted in line with normal market conditions.
Treasury consent, in the form of a warrant signed by two Lords Commissioners must be obtained before a transaction goes ahead.
Disagreement
16. Were the Treasury to refuse approval for a transaction then that transaction cannot proceed unless the Duchy can produce further information that subsequently convinces the Treasury that the transaction will support the capital asset value of the estate.
Duty of Confidence
17. All discussions are held under a duty of confidence in order to enable a free and frank exchange and protect the commercial interests of both the Duchy and its counterparties.
Review
18. This memorandum is reviewed every two years. An up to date version is published on the Duchy websites.
1 April 2026