The Duchy of Lancaster is one of the two royal duchies in England, the other being the Duchy of Cornwall. It is held in trust for the Sovereign, and is used to provide income for the use of the British monarch. The Duchy of Cornwall provides income to the Prince of Wales.
The duchy comprises 18,700 ha (46,000 acres), including key urban developments, historic buildings, and farm land in many parts of England and Wales, as well as large holdings in Lancashire. In the fiscal year of 2010, it was valued at £348 million. The Sovereign is not entitled to the capital of the portfolio nor to capital profits. Revenue profits are distributed to the Sovereign, and are subject to income tax. The Chancellor of the Duchy of Lancaster is a Government Minister appointed by the Sovereign on the advice of the Prime Minister. The Chancellor is 'answerable to Parliament' for the running of the Duchy.
In addition to holding land in Lancashire, the Duchy of Lancaster also exerts some powers and ceremonial duties of The Crown in Lancashire and Greater Manchester, Merseyside and the Furness area of Cumbria, which together form the County Palatine of Lancashire. Since the Local Government Act 1972, the Duchy holds and exerts the right to appoint Sheriffs and Lords Lieutenant in the ceremonial counties of Greater Manchester, Merseyside and Lancashire, which include areas from the historic county boundaries of Cheshire and Yorkshire.
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