A spate of details about Prince William’s finances have been reported as the royal family faces continued scrutiny over funding. The Times and Sunday Times newspapers have led the way in a series of stories that have provided information about William’s tax bill, the rent for his current Windsor home, and his plans for the Duchy of Cornwall.
It was first reported earlier this month that William pays up to £7 million per year in tax on the more than £20 million that he now receives annually from the Duchy of Cornwall in his position as heir to the throne. In recent days, it has been revealed that he and Kate pay around £300,000 per year rent on Forest Lodge, the property they now live in with their three children in Windsor. And another story reported that William has plans to sell off a fifth of the Duchy of Cornwall land and reinvest the money into other parts of the estate.
The stories all relate to slightly different aspects of royal finances—which are often regarded as complex and spark much debate. The funding for the monarchy has long been a point of contention for some, however it has become particularly scrutinized in recent years due to the £369 million of public funds allocated to renovate Buckingham Palace alongside an increase in funding generally. Focus on former Prince Andrew’s money has also put a spotlight on the subject.
The British royals get their money for their duties from two main sources: The Sovereign Grant and the Duchies. The Sovereign Grant is an annual lump sum from the UK Treasury, which in the current financial year is £137.9 million. It is calculated at 12% of the profits of an independently-run estate called the Crown Estate, which encompasses thousands of acres of land across the UK and sends all its profits directly to the Treasury. This funding system often causes confusion and leads to people erroneously claiming that the monarchy brings in the money from the Crown Estate but only keeps a percentage. In fact, the Crown Estate has always been a national asset used to pay for public services (historically the monarch used to collect the money and use it to pay for the government). Each year, usually in June or July, the royal household reveals in detail how it has spent the Sovereign Grant.
Separately, the Duchy of Lancaster provides the King with an income of millions each year and the Duchy of Cornwall does the same for William. Both estates were set up in medieval times, and the money received is considered to be personal income which means there is less detailed information made public about how exactly it is spent. This is the money that William is understood to use to pay rent on his Forest Lodge home.
Prince William has come under fire in recent years for not choosing to disclose how much tax he pays on his Duchy of Cornwall income, breaking the tradition set by his father when he was Prince of Wales. He is legally exempt from paying tax, but since 1993 the monarch and heir have chosen to do so on their Duchy income as royal finances became a subject of debate.
Town & Country Contributing Editor Victoria Murphy has reported on the British Royal Family since 2010. She has interviewed Prince Harry and has travelled the world covering several royal tours. She is a frequent contributor to Good Morning America. Victoria authored Town & Country book The Queen: A Life in Pictures, released in 2021.
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