Queen Elizabeth’s private income sees hike of 1 million pounds
The collection of property that falls under her Duchy of Lancaster has been the personal estate of the British monarch since 1399 and generates income on an annual basis.Updated: Jul 20, 2018, 19:05 IST
Queen Elizabeth II saw a hike of 1 million pounds in her private income to around 20 million pounds, according to new royal accounts released on Friday.
The collection of property that falls under her Duchy of Lancaster has been the personal estate of the British monarch since 1399 and generates income on an annual basis.
The 2017 accounts for the estate show that its net asset value, or how much the estate is worth, jumped 2.9% to 533.8 million pounds on the back of fewer days where properties were not rented and lower costs.
As a result, the Queen received a payment of 20.2 million pounds, a 4.9% increase on the year previously. The money from the estate is used to fund the 92-year-old monarch’s public and private activities.
While the estate is not subject to corporation tax as it is not a separate legal entity for tax purposes, the Queen voluntarily pays income tax on revenue she receives from the Duchy.
Brexit was flagged as a “strategic risk” in the 60-page income report, which said, “Each year the duchy carries out a five-year business plan as well as preparing rolling forecasts for the year ahead.
“As part of this process, a review is undertaken of long-term trends to assess options for continued and ongoing viability of Duchy operations – this would include any outcomes from Brexit negotiations.”
At 64%, the bulk of the duchy’s income came from commercial activities, the report said. Agriculture made up 18%, followed by financial activities on 10% and residential income at 8%.
Nathan Thompson, chief executive officer and clerk of the Duchy Council, said, “This has been another positive year for the duchy, with strong growth in almost all of our business sectors.”
He said the estate’s performance had been boosted by “improving tenant relations, reducing voids and increasing efficiency”.
Spanning thousands of hectares, the portfolio includes rural land across eight English counties and in South Wales, 10 castles, and a number of historic buildings including on the Savoy Estate in central London and in Harrogate.
The Queen also owns a number of industrial and warehouse properties, and the report said that the duchy has identified a number of sites where homes could be built in the year ahead.