Finances

Finances

The Prince of Wales's life and work are funded predominantly by the Duchy of Cornwall.

All the private and the large majority of the official and charitable activities of The Prince of Wales and The Duchess of Cornwall are funded by The Prince’s annual private income from The Duchy of Cornwall estate.

Since it was established in 1337 by Edward III for his eldest son Prince Edward, the Duchy's main purpose has been to provide an income for the Heir to the Throne. Under the 1337 charter, and as confirmed by subsequent legislation, The Prince of Wales is not entitled to the proceeds or profit on the sale of the Duchy’s capital assets, but only to its annual income.

Today, the estate consists of around 54,424 hectares of land in 23 counties, mostly in the South-West of England, and includes agricultural, residential and commercial property holdings. It also has a financial investment portfolio.

The Prince of Wales chooses to use the majority of his after-tax income from the Duchy to meet the cost of his public and charitable work. In addition, each year he helps raise, directly or indirectly, around £130 million for his core 20 charities.

The Prince pays tax on his Duchy income, after the normal deductions for business expenses, at the 40 per cent rate. Like any other tax-payer, his tax return is subject to review by the Inland Revenue.  In 2009-10, The Prince’s income from the Duchy was £17.1 million.  The Prince of Wales chooses to spend well over half of his after-tax income from the Duchy of Cornwall on official duties and charitable activities.  Click here to find out more about official expenditure.