The Monarchy Today > Royal finances > Financial arrangements of The Prince of Wales

The Duchy of Cornwall is one of the largest and oldest estates in Britain. It includes around 54,850 hectares in 20 counties, mostly in the South West of England.

The Duchy of Cornwall was created in 1337 by Edward II for his son Prince Edward.

Its main role is to provide Princes of Wales with an income from its assets.

The Duchy of Cornwall consists of around 54,764 hectares of land in 22 counties, mostly in the South West of England.

The landed estate includes agricultural, commercial and residential property. The Duchy also has a financial investment portfolio. It is run on a commercial basis, as prescribed by the parliamentary legislation which governs its activities.

The Duchy estate was created in 1337 by Edward II 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 sell the assets.

This was done to ensure that the estate, and the income which it provided, survived from generation to generation. The same principle was applied to the Duchy of Cornwall.

Under the 1337 charter, as confirmed by subsequent legislation, The Prince of Wales does not own the Duchy’s capital assets, and is not entitled to the proceeds or profit on their sale, and only receives the annual income which they generate (which is voluntarily subject to income tax).

Because of the importance of the beneficiary, the Duchy’s ‘trust provisions’ have over the years, been set out in legislation, with the financial security of the Duchy overseen by HM Treasury.

The Duchy’s founding charter included the gift of estates spread throughout England. It also stated that the Duchy should be in the stewardship of the Heir Apparent, to provide the Heir with an income independent of the Sovereign or the State.

After 670 years, the Duchy’s land holdings have become more diversified, but the Duchy is still predominantly an agricultural estate.


	Houses in Poundbury, a pioneering development created by The Prince of Wales on Duchy of Cornwall land in Dorset © Press Association The Prince of Wales does not receive money from the Civil List; his work is funded mainly by income from the Duchy of Cornwall. The Prince of Wales’s life and work are funded predominantly by the Duchy of Cornwall. His Royal Highness receives the annual net surplus of the Duchy of Cornwall and chooses to use a large proportion of the income to meet the cost of his public and charitable work. The Prince also uses part of the income to meet the costs of his private life and those of his wife, The Duchess of Cornwall, and his sons, Prince William and Prince Harry. As a Crown body, the Duchy is tax exempt, but The Prince of Wales voluntarily pays income tax (currently at 40 per cent) on his taxable income from it. The Prince became the 24th Duke of Cornwall on The Queen’s accession in 1952. He is in effect a trustee, and is not entitled to the proceeds of disposals of assets. The Prince must pass on the estate intact, so that it continues to provide an income from its assets for future Dukes of Cornwall. The Prince of Wales does not receive money from the Civil List, but the Grants-in-Aid paid to The Queen’s Household are used, in part, to support his official activities. Read more about the finances of The Prince of Wales in the Annual Review published by Clarence House.
	The Duchy of Cornwall is one of the largest and oldest estates in Britain. It includes around 54,850 hectares in 20 counties, mostly in the South West of England. The Duchy of Cornwall was created in 1337 by Edward II for his son Prince Edward. Its main role is to provide Princes of Wales with an income from its assets. The Duchy of Cornwall consists of around 54,764 hectares of land in 22 counties, mostly in the South West of England. The landed estate includes agricultural, commercial and residential property. The Duchy also has a financial investment portfolio. It is run on a commercial basis, as prescribed by the parliamentary legislation which governs its activities. The Duchy estate was created in 1337 by Edward II 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 sell the assets. This was done to ensure that the estate, and the income which it provided, survived from generation to generation. The same principle was applied to the Duchy of Cornwall. Under the 1337 charter, as confirmed by subsequent legislation, The Prince of Wales does not own the Duchy’s capital assets, and is not entitled to the proceeds or profit on their sale, and only receives the annual income which they generate (which is voluntarily subject to income tax). Because of the importance of the beneficiary, the Duchy’s ‘trust provisions’ have over the years, been set out in legislation, with the financial security of the Duchy overseen by HM Treasury. The Duchy’s founding charter included the gift of estates spread throughout England. It also stated that the Duchy should be in the stewardship of the Heir Apparent, to provide the Heir with an income independent of the Sovereign or the State. After 670 years, the Duchy’s land holdings have become more diversified, but the Duchy is still predominantly an agricultural estate. The Prince of Wales Biography of the heir to the throne SUGGESTED LINKS The Prince of Wales Duchy of Cornwall