The Monarchy Today > Royal finances > Privy Purse and Duchy of Lancaster

Coat of arms of the Duchy of Lancaster
© Duchy of Lancaster

PRIVY PURSE AND DUCHY OF LANCASTER

The Privy Purse is the historical term used to describe the income from the Duchy of Lancaster which is used to meet both official expenditure incurred by The Queen as Sovereign and private expenditure.

The Duchy of Lancaster is a unique portfolio of land, property and assets held in trust for the Sovereign in his or her role as Duke of Lancaster.

Since a Duke of Lancaster came to the throne in 1399, the Duchy of Lancaster has been administered separately from the Crown Estates. It continues to be an independent entity in terms of administration and inheritance.

Today the Duchy of Lancaster is custodian of 18,800 hectares across England and Wales, including key urban developments, historic buildings, high-quality farm land and areas of great natural beauty.

The Duchy's main purpose is to provide an independent source of income for the Sovereign as Duke of Lancaster. This money is mainly used to defray official expenditure not historically met by the Civil List.

The Queen uses a large part of it to meet official expenses incurred by other members of the Royal Family. Only The Queen and The Duke of Edinburgh receive payments from Parliament which are not reimbursed by The Queen.

The net revenues from the property and investments are paid to the Keeper of the Privy Purse, the member of the Royal Household who is responsible for managing the Sovereign's finances. Revenues presented to the Sovereign are currently in the region of £8m per year.

The Duchy is like a statutory perpetual trust where the income is received by the life tenant, while the capital accumulates for the benefit of future Sovereigns.

The Sovereign is not entitled to the Duchy's capital, nor to capital profits. Revenue generation is balanced against the long term need to provide income for future generations of Sovereigns.


	Coat of arms of the Duchy of Lancaster © Duchy of Lancaster PRIVY PURSE AND DUCHY OF LANCASTER The Privy Purse is the historical term used to describe the income from the Duchy of Lancaster which is used to meet both official expenditure incurred by The Queen as Sovereign and private expenditure. The Duchy of Lancaster is a unique portfolio of land, property and assets held in trust for the Sovereign in his or her role as Duke of Lancaster. Since a Duke of Lancaster came to the throne in 1399, the Duchy of Lancaster has been administered separately from the Crown Estates. It continues to be an independent entity in terms of administration and inheritance. Today the Duchy of Lancaster is custodian of 18,800 hectares across England and Wales, including key urban developments, historic buildings, high-quality farm land and areas of great natural beauty. The Duchy's main purpose is to provide an independent source of income for the Sovereign as Duke of Lancaster. This money is mainly used to defray official expenditure not historically met by the Civil List. The Queen uses a large part of it to meet official expenses incurred by other members of the Royal Family. Only The Queen and The Duke of Edinburgh receive payments from Parliament which are not reimbursed by The Queen. The net revenues from the property and investments are paid to the Keeper of the Privy Purse, the member of the Royal Household who is responsible for managing the Sovereign's finances. Revenues presented to the Sovereign are currently in the region of £8m per year. The Duchy is like a statutory perpetual trust where the income is received by the life tenant, while the capital accumulates for the benefit of future Sovereigns. The Sovereign is not entitled to the Duchy's capital, nor to capital profits. Revenue generation is balanced against the long term need to provide income for future generations of Sovereigns.
	Founded in the thirteenth century, the Duchy of Lancaster provides an independent source of income for the Sovereign as Duke of Lancaster. Money from the Duchy is mainly used to cover official expenditure not met by the Civil List, such as the official expenses of other members of the Royal Family. All revenue profits from the Duchy of Lancaster distributed to the Sovereign are subject to income tax in the normal way. The annual accounts of the Duchy are submitted to Parliament. Full copies of recent years' accounts can be found on the web site of the Duchy of Lancaster. The Duchy of Lancaster is administered on behalf of the Sovereign, the Duke of Lancaster, by the Chancellor and Duchy Council. The officers of the Duchy manage its property and investments. The Chancellor of the Duchy of Lancaster, who is the equivalent of the chairman of the trustees, is responsible to the Sovereign for the administration of the Duchy. He has in recent years normally been a Government minister, although this is not a requirement. Privy Purse and Treasurer's Office The department responsible for Royal finances and spending SUGGESTED LINKS Duchy of Lancaster