Everything You Need to Know About Prince William’s Duchy of Cornwall
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When Queen Elizabeth died in September 2022, it was not just the end of the UK’s longest reign but also the end of then-Prince Charles’s tenure as the longest-serving Prince of Wales. And as the wheels turned in the system of constitutional monarchy, one of the major changes that happened overnight was the fact that Prince William inherited the Duchy of Cornwall.
So synonymous with his father for so many decades, the Duchy land is even home to two whole towns built to Charles’s vision. But now William is heading it up, with the task of running it and the reward of the hefty income it brings.
We break down everything you need to know about the Duchy of Cornwall today.
What is the Duchy of Cornwall?
The Duchy of Cornwall is essentially a land and property empire which provides the male heir to the throne with an income (yes, you read that right, the current set-up is still only for a male heir). The Duchy land consists of almost 53,000 hectares across 20 counties in England, mostly in the South West. Despite its name, it is not all in Cornwall and it does not cover all of Cornwall (although around 13% of the estate is in Cornwall).
The Duchy describes itself as a “private estate” and the British government recognises it as such. The Duchy makes it clear that it is not a corporation and that is why it does not pay corporation tax. However, there are those who contest how the Duchy defines itself, and its status has sparked much debate over the years.
In 2013, Chair of the Public Accounts Committee, Margaret Hodge told Sky News, "What started off 700 years ago as a medieval estate, today demonstrates all the features of a modern big corporation, yet it hangs on to old habits such as exemption from corporation tax.” In 2018, Lord Berkley, who has frequently spoken out for more scrutiny of the Duchy, told UK Parliament, “The trouble is, the Duchy sometimes chooses to be treated as a private estate and sometimes as a Crown body, which receives privileges and is largely unaccountable and silent on many issues.”
In 2020, parliamentarian Norman Baker told the BBC, "It's extraordinary in the year 2020 that a medieval throwback like the Duchy of Cornwall - which is simply a money-making machine for the Prince of Wales - can continue to exist in the way it does."
How much money does Prince William make from the Duchy and does he pay tax on it?
Prince William receives all the net (post-tax) profits from the estate, which is around £20 million ($25.35 million) per year. This is considered to be private income and not public money. However, republicans argue that the UK Treasury would benefit financially if there was no Duke of Cornwall, so it should be viewed as public funds.
Technically, Prince William can spend the income on whatever he likes. The convention is for it to fund charitable activities and private activities including private residences. In Prince Charles’s tenure, he used it to support his sons and their offices.
While the Duchy does not pay corporation tax, Prince William is expected to follow his father’s lead and pay income tax on the profits he receives. This is not a requirement, as he is legally exempt, however the optics of not doing so would undoubtedly spark controversy.
What is the history of the Duchy?
There are many who argue that the Duchy system of bestowing a huge personal income on the heir to the throne belongs to another era. And indeed it was set up in precisely another era. Edward III (whose other notable endeavors included invading France and starting the Order of the Garter) created the Duchy in 1337.
In their 2023 series on royal funding, the Guardian newspaper charted the history of the Duchy and the debates that it has sparked over the years. Their reporting also included information on the Duchy of Lancaster which is the same set-up that provides a “private" income to the Sovereign.
How is the Duchy of Cornwall run today?
The Duchy points out that the estate is run by the Duke of Cornwall, now Prince William. There is a board, which the Duchy says meets twice a year and is chaired by the Prince.
For day-to-day management, the Duchy has a Secretary and Keeper of the Records, a role held by Alastair Martin since 2013. Other roles include Land Stewards who are responsible for the management of the Duchy’s property interests in different areas and report to a Rural Director.
The Duchy has received criticism over the years for certain exceptions it enjoys. There are ongoing complaints from residents who cannot buy the freehold to their houses (a legal right for most in the UK) because of an exemption made for some Duchy land.
Can Prince William do what he wants with the Duchy?
There are some restrictions and oversight of how William manages Duchy land, brought in under the Duchies of Lancaster and Cornwall (Accounts) Act 1838. The Treasury must approve all property transactions of more than £500,000 or more, and the Duchy’s accounts are overseen by the Treasury.
While William receives the net profits from the Duchy, he does not get the proceeds from the sale of assets. Regulations stipulate that these must be reinvested into the estate. He does not, therefore, pay capital gains tax.
In 2013, the UK’s Public Accounts Committee highlighted issues with the estate’s transparency on tax and said that the Treasury did not do enough to scrutinise the Duchy’s financial strategy.
As Prince Charles demonstrated with the creation of entire new communities Poundbury and Nansledan, the Duke of Cornwall does have a lot of opportunity to put their own stamp on the estate. “Poundbury is built on Duchy of Cornwall land, in accordance with the principles of architecture and urban planning as advocated by HRH The Prince of Wales in his book ‘A Vision of Britain’,” the official website of Poundbury says.
Is Prince William using the Duchy of Cornwall to help the homeless?
There was a buzz earlier this year when the Duchy of Cornwall put out a statement announcing plans to “tackle homelessness on Duchy of Cornwall land.” They said they were launching “the estate’s first ever innovative housing project to help address homelessness in Nansledan,” which is in Newquay, Cornwall. Working alongside charity St Petrocs, they said they will provide 24 homes alongside support for people experiencing homelessness. As well as this, the Duchy said that it plans to increase its affordable housing provision in the area, creating up to 200 more affordable homes.
Anti-monarchy organization Republic has described the move as “more spin than substance,” saying that all the money William takes from the Duchy should be spent on communities. The Sunday Times, which broke the story before it was announced, said that William wanted to “lead from the front” and encourage other landowners to build more social housing.
What would happen to the Duchy of Cornwall if the monarchy was abolished?
Interestingly, current legislation stipulates that if there is no Duke of Cornwall then the Duchy reverts to the monarch, and the money that the monarch receives from the UK Treasury is reduced by the amount of the Duchy’s income as a result. However, there is no clear pathway for what would happen to the Duchy if the monarchy was abolished as it would depend on what terms Britain decided to get rid of the monarchy, which are not speculatively laid out in any legislation.
There is the possibility that the money Prince William currently receives would go into the UK’s public purse in some form. But exactly how a centuries-old system would be unravelled is far from straightforward or clear.
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