“[Royal wills] Laura Clancy, a media lecturer at Lancaster University and author of a book on royal finances, told CNN Business.
The line of succession makes Prince William, now the first in line to the British throne, even wealthier.
The future king will inherit the personal duchy of Cornwall from his father. The Duchy owns a sprawling portfolio of nearly 140,000 acres of land and property, most of it in South West England.
In the year Created in 1337 by King Edward III, the estate is worth around £1 billion ($1.2 billion) according to the accounts of the last financial year.
Income from the estate “will be used to support the Duke of Cornwall’s public, private and charitable causes,” according to his website. That title is now held by Prince William.
The property includes extensive central London property and coastline around England, Wales and Northern Ireland. It has the status of a corporation and is managed by a chief executive and commissioners – or non-executive directors – appointed by the emperor on the recommendation of the prime minister.
It made a net profit of £313 million ($361 million) last financial year. From this, the British Treasury paid the Queen a sovereign gift of 86 million pounds ($100 million). This equates to £1.29 ($1.50) per person in the UK.
Much of the money is spent on maintaining the royal family’s properties and paying their staff.
The sovereign grant is usually equal to 15% of the property’s profits. However, in 2010, In 2017, payments for Buckingham Palace renovations fell by up to 25% over the next decade.
King Charles inherited the prestigious Duchy of Lancaster in 1265. About £653 million ($764 million), according to its latest accounts. Income from the investments Covers and assists official expenses not covered by the Sovereign Grant Support other members of the royal family.
Restrictions apply
The King can spend a sovereign gift only on royal functions. And neither he nor his heirs are allowed to benefit from the sale of property in their duchies. Any profits made are reinvested in the property, published as an investor Institute of Government (IfG).
The UK Treasury must approve all large property transactions, the IfG said.
Still unlike the sovereign grant Both originated by the Crown Estate Duchies are private sources of wealth, meaning their owners are not required to provide any details beyond showing their income, IFG said.
Last year, King Charles, then the Duke of Cornwall, paid himself £21 million ($25 million) from the Duchy of Cornwall estate.
That It comes a year after the royal family faced strong criticism for plans to use public money to repair fire-damaged Windsor Castle, Clancy said.
“Indeed, voluntary income tax [is] It’s not a fixed rate, and they don’t have to disclose how much income they pay. So it’s really like pulling an image out of thin air,” Clancy said.
Buckingham Palace did not immediately respond to CNN Business when reached for comment.
