In the News
Public Accounts Committee
24th October 2006
It has been reported today (24th October 2006) that the PAC has written to the Treasury for further clarification of the Duchy of Cornwall's tax status. Some media reports have suggested that The Prince of Wales enjoys a favourable tax status. As we have explained before The Prince of Wales pays income tax at the full rate like everyone else.
He is allowed to deduct expenses for his official and charitable work, in the same way as other people, and his tax bill is audited in the normal way by the Inland Revenue.
The Duchy does not pay corporation tax as it is not a company. All revenue that would be taxed is already subject to income tax which is paid by The Prince of Wales. An organisation cannot be subject to both corporation tax and income tax. If The Duchy also paid corporation tax The Prince would effectively be taxed twice on the same income.
The Prince does not pay capital gains tax as he is not entitled to any capital gains from the Duchy. All proceeds from capital transactions must be reinvested back within the Duchy’s business.
The National Audit Office’s role is to audit the financial statements of government departments and agencies and other public bodies. The Duchy of Cornwall is not a government agency or public body. It is a private estate that provides an income for The Prince of Wales. The Duchy accounts already come under rigorous scrutiny. As well as being audited by independent auditors, they are also subject to scrutiny from the Treasury.
The Duchy of Cornwall is a professionally run, well managed and, at The Prince’s own instructions, promotes sustainability, practical conservation measures and best environmental practice.