Duchy of Cornwall

The Duchy of Cornwall is one of two royal duchies in England, the other being the Duchy of Lancaster. The eldest son of the reigning British monarch inherits the duchy and title of Duke of Cornwall at the time of his birth, or of his parent's succession to the throne. If the monarch has no son, the estates of the duchy are held by the crown, and there is no duke. The current duke is Charles, Prince of Wales.

The principal activity of the duchy is the management of its land and properties. The duchy has a financial investment portfolio and owns land totalling 540.9 km² (or 208.9 sq. mi.). Nearly half of the holdings are in Devon, with other large holdings in Cornwall, Herefordshire, Somerset and Wales. For the fiscal year 2007, the duchy was valued at £647 million, and annual profit in 2007 was £16.3 million, thus yielding 2.5%. The duchy also exercises certain legal rights and privileges across Cornwall, including some that elsewhere in England would usually belong to the crown.

As a crown body, the duchy is exempt from paying corporation tax. Since 1993, the Prince of Wales has voluntarily paid income tax at the normal rates. The Prince paid a voluntary contribution to the treasury of 50% of his Duchy income from the time he became eligible for its full income at the age of 21 in 1969, and paid 25% from his marriage in 1981 until the current arrangement commenced in 1993. Tax is calculated after deducting business expenditure, the biggest source of which is the Prince's staff of about 110 who assist with his performance of official duties, including private secretaries and a valet working in his office at Clarence House and at Highgrove House. Detailed records are kept to determine the split between official and private expenditure.