2023-05-06 06:00:00
(CNN) — When the British royal family organizes an event, it is not done with discretion, it is full of pomp, splendor and power. And all this opulence often makes us think of money. Where does fortune come from?
Everything is part of an intricate system made up roughly of three sources.
The Sovereign Grant
Total Crown Estate Profits in 2019-2020: 345 million pounds
Proceeds from the Crown Estate earmarked for the 2021-2022 Sovereign Grant: 86.3 million pounds
The Sovereign Grant is the most public funding source, and often the most controversial.
This grant is a part of the profits generated by the Crown Estate (Crown Estate) a vast portfolio of stately properties across the UK that are let to individuals and businesses.
All equity assets amounted to more than US$ 20,000 million or £16.5 billion in 2022.
Although it is called Crown Heritage, it is not the private property of the monarch or his family. They can’t sell them.
Since 1760 they have belonged to the sovereign during his stay on the throne, but they are managed by an independent organization.
All the profits from the properties go to the British Government, which then returns a percentage to the monarch.
It is almost like an allowance, or an expense account that must be used by the monarch and his representatives to carry out public functions. Expenses include travel, personal, and household expenses.
In 2017, the allocation went from 15% to 25% to cover the costs of renovating Buckingham Palace, which will continue for 10 years.
And if the Crown Estate’s profits decline, the UK Treasury tops up the grant, as there is a rule to keep the lump sum at the same level as the previous year.
This funding has drawn criticism from anti-monarchy groups such as the Republic, who are calling for the subsidy to be removed. They claim that the country should be entitled to keep all the benefits. The group has also called for the Crown Estate to be renamed a “National Heritage”.
Among King Charles’s efforts to sway public opinion included diverting revenue from the Crown Estate’s wind power directly to the Government, so that it might be used for the “general public good”.
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the ducats
Duchy of Lancaster: 652.8 million pounds
Duchy of Cornwall: Around £1 billion
Separated from the sovereign grant, they have the duchies. They are private properties belonging to a duke or duchess. The two main ones are the duchies of Lancaster and Cornwall. Both have valuable land and property that is leased.
The Duchy of Lancaster belongs to the monarch, while the Duchy of Cornwall belongs to the monarch’s heir.
Unlike the Sovereign Grant, income from duchies is considered private, but it is not exempt from rules.
Although the monarch and his heir can spend this income as they see fit, any profit from the sale of assets in the duchies must be reinvested.
private heritage
There are also other private assets, usually inherited.
This includes some of the late Queen Elizabeth II’s favorite estates, such as Balmoral Castle and the Sandringham estate.
The family also owns art and jewelry collections, but some are national property and cannot be sold. In addition, they have their private investments and savings.
Taxes
Although the Monarch and Prince of Wales have paid taxes, they have been largely voluntary.
The rules on taxation are intricate and contained in a government memorandum and, in general, the sovereign is not required to pay.
For example, although the monarch must pay tax on private sources of income, such as investments, he does not have to pay tax on income from the Duchy of Lancaster. This is voluntary.
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