William takes an heir cut on his Duchy income by cancelling some rents
Following an investigation, the prince’s Duchy of Cornwall has decided that several good causes need no longer pay a levy to use its land, meaning a drop of millions in revenue.
Prince William has stopped imposing rents on lifeboat stations, the fire service, village halls and school playing fields after a Sunday Times investigation revealed his private property empire was making large sums of money from charities and community groups.
The Duchy of Cornwall, which provides William with a private income, said it had taken the opportunity “to stop and reflect” since the story and the estate now wished to adopt a “new policy” to ensure it was “a force for good in the years to come”.
In November, a joint investigation with Channel 4’s Dispatches obtained the details of 3536 properties held by the Duchy of Lancaster, which provides the King with an income, and 1874 held by the Duchy of Cornwall.
The files revealed that Charles and his elder son were making millions a year in tax-free profits by charging charities, the armed forces, the NHS, schools, the prison service and councils for the right to use lands, rivers and seashores largely seized by the monarchy in medieval times.
Lifeboat stations, a fire station and a lighthouse
Charles and William operate as commercial landlords while holding a special status exempting them from paying corporation tax on their profits. Last year, the Duchy of Lancaster raised $57 million for the King, and this year the Duchy of Cornwall raised $48 million for the prince, which they use to fund their private homes, personal income and staff.
This private income is separate from the $275 million of public money, the sovereign grant, the royals will receive from the exchequer this year to finance their formal duties, palaces and official households.
The Duchy of Cornwall has now announced it will stop imposing the following rental charges:
- $1250 a year from the Royal National Lifeboat Institution for permission to use the prince’s beaches at Salcombe, Sennen Cove, the Lizard, Rock and St Mary’s in the Isles of Scilly.
- $31,000 from Devon county council over 50 years to allow Princetown fire station to operate on duchy land.
- Thousands of dollars a year from communities for permission to use village halls in Curry Mallet and Newton St Loe, allotments in Bradninch and a community orchard in Newquay used to help disadvantaged groups.
- $6200 over 20 years from the Trinity House maritime charity for the right to operate the Bishop Rock lighthouse in the Isle of Scilly.
- Thousands of dollars a year from councils and schools so the public can use playing fields, rugby pitches and recreation grounds in Princetown, Corston, Clandown near Bath and Stoke-sub-Hamdon in Somerset.
- $260,000 over 25 years from the government for the use of the visitor centre and shop at Tintagel Castle, which fund the castle’s preservation.
- $420 a year for the use of a children’s play area in Poundbury, Dorset, and rental payments from the Scouts.
The duchy said it was also reviewing the rents it charges state schools. Devon county council is required to pay the duchy at least $665,000 over 21 years for the right to operate Princetown Community Primary School, on Dartmoor. Farrington Gurney Church of England Primary School, near Bath, is paying $125,000 for the use of its premises over 25 years.
Will Bax, the Duchy of Cornwall’s keeper of the records, said: “Our new policy recognises our key role at the heart of communities. As such we will waive rents for grassroot community tenants and give up to 50 per cent rental discounts to charity tenants where they directly rent space from the duchy, and are active on the ground within our communities.
“The transition to the leadership of the 25th Duke of Cornwall marked a significant moment for the estate. Together, we are building on the strong foundations and seizing the opportunity to strengthen our positive impact, ensuring the duchy remains a force for good in the years to come.”
Parks and community centres
However, the duchy says it will continue to take large taxpayer-funded rents from government departments.
Over the past 20 years, it has charged the Ministry of Defence at least $1.9 million for the right to moor boats needed to train recruits on the waters surrounding the Britannia Royal Naval College in Dartmouth, the country’s top naval academy.
The duchy also charges the Royal Navy $21,000 a year for access to its own oil depot, which is used to fuel the nation’s warships, at Devonport in Plymouth, the UK’s biggest naval base. The duchy imposes further charges on the army for the right to train within Dartmoor National Park. The King is head of the armed forces and William is commodore-in-chief of the submarine service.
In addition, the duchy says it will continue to charge the Ministry of Justice (MoJ) $3.1 million a year - amounting to $78 million over the 25 years of the lease - to use HMP Dartmoor, despite it now standing empty because of high levels of toxic gas recorded on the site. The lease compels the MoJ to spend at least $142 million to update the buildings over the next decade.
Last week the duchy said the MoD and MoJ both obtained their “own independent specialist advice in connection with licences and leases held with the duchy including on matters of rent”.
Dorchester Community Church will continue to pay at least $1 million to the duchy over the duration of its 250-year lease.
The duchy said: “This property is subject to a unique legal position. Rent will not be reduced.”
The tax and operating status of the duchies has long been a source of contention. The Duchy of Lancaster says it operates as a commercial company and the Duchy of Cornwall says it is a “private estate with a commercial imperative”.
Under a memorandum of understanding with the Treasury, the estates receive special tax status. This means they pay no capital gains or corporation tax and do not have to comply with property laws, such as compulsory purchase orders.
The King and the prince say they pay income tax voluntarily at the highest rate (45 per cent) on the duchy money they receive. The last time Charles published his taxes, for 2021-22, he paid income tax of $12.3 million, which amounted to 25 per cent of the $48 million duchy profit, because he deducted expenses he considered related to his official duties.
William has never declared how much tax he pays. Kensington Palace declined to say how much income tax the prince paid on the $47.6 million he received from the duchy last year.
Last week the Duchy of Lancaster said it was “actively reviewing” its own rental charges, which include charging the NHS more than $23 million to park ambulances in a London warehouse owned by the King. Its latest accounts have not yet been released.
Baroness Hodge of Barking, the government’s anti-corruption champion, said the duchy’s reforms showed “the best of journalism does have an impact”.
“This is a good first step but they need to do more,” she said.
“The royals need to remember they are receiving a huge amount of taxpayers’ money via the sovereign grant. That puts the onus of responsibility on them not to exploit their position and charge public services an arm and a leg.”
The Times
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