Prince William will now inherit the new King’s former properties as he assumes the duties of Duke of Cornwall to become England’s biggest landowner.
For more than half a century, the Duchy of Cornwall – which covers thousands of acres, most of it in southwest England – was an income stream for his father who inherited the estate at the age of 21.
The estate which was created in 1337 by King Edward III is worth around £1 billion ($1.2 billion), according to its accounts for the last financial year.
The estate includes vast swathes of central London property and the seabed around England, Wales and Northern Ireland and has the status of a corporation managed by a chief executive and commissioners or non-executive directors that is appointed by the monarch on the recommendation of the prime minister.
While it generated net profit of almost £313 million ($361 million) in the last financial year, the UK Treasury paid the Queen a Sovereign Grant of £86 million ($100 million) from the amount – equivalent to £1.29 ($1.50) per person in the United Kingdom.
Formally, the Sovereign Grant was equivalent to 15% of the estate’s profits, however, in 2017, the payment was bumped up to 25% for the next decade so as to help pay for refurbishments to Buckingham Palace.
Most of this money is spent on maintaining the Royal family’s properties and paying their staff. Last year, King Charles paid himself £21 million ($25 million) from the Duchy of Cornwall estate though not obliged to pay any form of tax on their estates, King Charles has voluntarily paid income tax since 1993.
Notably, King Charles also inherits the Duchy of Lancaster. The private estate which dates back to 1265, according to its most recent account was valued at about £653 million ($764 million). Income from its investments cover other Royal family members’ official costs not met by the Sovereign Grant.
