Queen's income from Duchy of Lancaster estate rises by more than £1m to £21.7m, latest accounts show

The Queen's income from her private Duchy of Lancaster estate has increased by more than £1 million to £21.7 million, new accounts show.

Funds the Queen receives from the Duchy, which are used to pay for her public and private activities, increased by almost 8 per cent during the 2018/19 financial year.

The total asset value of the Duchy - a portfolio of land, property and assets held in trust for the Sovereign - has risen by almost 3 per cent from £533 million to £548 million, the accounts revealed.

The 18,433 hectare Duchy estate, which was founded in the 13th century is a unique portfolio of land and assets in Lancashire, Yorkshire, Cheshire, Staffordshire and Lincolnshire.   

The Duchy also has a significant commercial property portfolio in the Savoy precinct, as well as the iconic Savoy Hotel near the Strand in central London, as well as a portfolio of financial investments and small urban residences.    

The Queen is not entitled to touch the capital of the estate but profits from the property empire go into the Privy Purse, providing a ‘private’ source of income for the monarch.

The Queen is entitled to spend the money as she wishes but also uses it to help support members of her family like Prince Andrew, Prince Edward and Princess Anne. 

Nathan Thompson, chief executive officer and clerk of the Duchy Council, said: 'We continue to develop a robust and sustainable business aimed at delivering attractive long-term returns while protecting the capital value of the Duchy inheritance.'

He added: 'Over the last 12 months, the Duchy purchased £2.3 million of land and property and invested £6.8 million in repairs and improvements. 

'Our strategic land business is a growing area of focus as we seek to respond to urgent housing need across the country.'

The Queen voluntarily pays income tax on income she receives from the Duchy but the estate is not subject to corporation tax as it is not a separate legal entity for tax purposes. 

Accounts for the Sovereign Grant, which funds the Queen and her household's official expenses, were published in June and showed the monarchy cost the taxpayer £67 million during 2018-19 - an increase of almost £20 million on the previous financial year.

A large amount of the rise was due to work updating the decades-old services at Buckingham Palace and maintaining the occupied royal palaces.

There are three sources of funding for the Queen There are three sources of funding for the Queen, or officials of the Royal Household acting on Her Majesty’s behalf, in both a public and private capacity.  These are the Sovereign Grant, the Privy Purse, with income from the Duchy of Lancaster estate and the Queen’s personal wealth and income.  The Sovereign Grant is the amount of money provided by Government to the royals in support of the Queen’s official duties, including the maintenance of the occupied royal palaces - Buckingham Palace, St James’s Palace, Clarence House, Marlborough House Mews, the residential and office areas of Kensington Palace, Windsor Castle and the buildings in the Home and Great Parks at Windsor, and Hampton Court Mews and Paddocks. The Privy Purse is a historical term used to describe income from the Duchy of Lancaster, which is used to meet both official and private expenditure by the Queen. The Duchy of Lancaster is a portfolio of land, property and assets held in trust for the soveriegn. It is administered separately from the Crown Estates. The Queen’s personal income, derived from her personal investment portfolio and private estates, is used to meet her private expenses. She owns the Balmoral and Sandringham Estates, which were both inherited from her father. The Queen does pay tax. In 1992, The Queen volunteered to pay income tax and capital gains tax, and since 1993 her personal income has been taxable as for any other taxpayer. Her Royal Highness has always been subject to Value Added Tax and pays local rates on a voluntary basis.

Source: Daily Mail

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