Royal Estates’ Income from Public and Charitable Organizations Revealed

A recent documentary has brought to light that the Royal Family has obtained millions of pounds in rental income from entities such as the NHS, educational institutions, and military branches. An investigation conducted by Channel 4’s Dispatches and the Sunday Times indicates that the private landholdings belonging to King Charles and Prince William maintain contractual agreements with various public sector organizations and charitable groups. Dame Margaret Hodge, speaking to the BBC on Sunday, stated that these findings have prompted “serious question marks” and advocated for a “full and transparent review” of the two duchies. A representative for the Duchy of Lancaster, which is King Charles’s private estate, affirmed that it “complies with all relevant UK legislation and regulatory standards applicable to its range of business activities”. It has been asserted that transactions undertaken by the Duchies of Lancaster and Cornwall generated approximately £50 million over the last year. Both the Duchy of Lancaster, founded in 1399, and Prince William’s Duchy of Cornwall, established in 1337, possess extensive land and commercial real estate across England and Wales. Their agreements with public entities reportedly encompass a £37.5 million contract between the Duchy of Cornwall and the Ministry of Justice for the lease of Dartmoor Prison, and an £11.4 million arrangement between Guy’s and St Thomas’ NHS Trust and the Duchy of Lancaster for a 15-year rental of a London warehouse to house ambulances. Furthermore, the estates are reported to levy charges on the Ministry of Defence for mooring boats and refueling warships, on certain state schools for the use of their premises, and on a local borough council for the operation of a toll bridge. These estates are exempt from corporation tax, and the royals are not required to pay capital gains tax on asset sales. They voluntarily remit income tax on their surplus earnings. The television program, Dispatches’ The King, The Prince and Their Secret Millions, states that information regarding these rental agreements has not been disclosed to Parliament. The report highlights that while the duchies assert they do not receive taxpayer funding, they do generate revenue from public services. The documentary also expresses apprehension regarding the environmental consequences of certain contracts held by the estates, specifically mentioning those with mining firms. These two private estates operate independently of the Crown Estate. Earnings from the Crown Estate—a property enterprise owned by the monarch but managed autonomously—are directed to the Treasury. The profit level achieved by the Crown Estate serves as a metric for determining the government’s financial provision to the Royal Family, known as the Sovereign Grant. The Sovereign Grant, which is funded by taxpayers, is projected to increase to £132 million in the upcoming financial year, following a rise in the Crown Estate’s profits to £1.1 billion. Dame Hodge, who previously chaired the Public Accounts Committee, remarked: “We all love the monarchy, we all want it to work. But we want them to lead by example in the way they conduct their finances.” She further stated: “They don’t pay capital gains tax and they don’t pay corporation tax, yet they claim to act commercially.” She concluded: “But they can’t have it both ways. If they want to be private and commercial they have to pay the fair rate of tax as everyone else does, otherwise they get a competitive advantage”. A representative for the Duchy of Cornwall commented that it is “a private estate with a commercial imperative which we achieve alongside our commitment to restoring the natural environment and generating positive social impact for our communities”. Addressing the matter of mining, the spokesperson asserted that the duchy was “acting responsibly and in a sustainable way” in accordance with the government’s industrial strategy, which promotes investment in domestic mineral resources. A spokesperson for the Duchy of Lancaster indicated that it functions “as a commercial company, managing a broad range of land and property assets across England and Wales”. They explained that the duchy “delegates certain functions, particularly those regarding asset management, to the Duchy Council” and although the King “takes a close interest” in the duchy’s operations, the daily oversight of the portfolio rests with the council and executive team. They also mentioned that it had implemented “a number of key environmental improvements in recent years”.