(CNN) — When the British royal family organizes an event, it does not do so with discretion, but with pomp, pomp and power. And all this opulence often makes us think of money. where does happiness come from
Everything is part of a complicated system made up of roughly three sources.
The sovereign grant
Total Crown Estate Profits in 2019-2020: 345 million pounds
Proceeds from the Crown Estate earmarked for the 2021-2022 Sovereign Grant: 86.3 million pounds
The Sovereign Grant is the most public source of funding and often the most controversial.
This grant is part of the profits of the Crown Estate, a vast portfolio of stately homes across the UK that are let to individuals and businesses.
All equity investments amounted to more than 20 billion dollars or £16.5 billion in 2022.
Although called Crown Heritage, it is not the private property of the monarch or his family. You can’t sell them.
Since 1760 they have belonged to the sovereign during his accession to the throne but are managed by an independent organization.
All profits from the properties go to the British government, which then gives a percentage back to the monarch.
It is almost like pocket money or an expense account that must be used by the monarch and his representatives to carry out public functions. Expenses include travel, staff and household expenses.
In 2017, the allotment increased from 15% to 25% to cover the cost of the Buckingham Palace renovation, which will take 10 years.
And if the Crown Estate’s profits fall, the UK Treasury will top up the grant as there is a rule to keep the lump sum at the same level as last year.
This funding has been criticized by anti-monarchy groups like the Republic, who are calling for the subsidy to be removed. They claim that the country should be entitled to keep all benefits. The group has also called for the crown estate to be renamed “National Heritage”.
King Charles’ efforts to sway public opinion included diverting revenue from the Crown Estate’s wind power directly to the government so that it could be used for the “common good”.
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the ducats
Duchy of Lancaster: 652.8 million pounds
Duchy of Cornwall: About £1 billion
The duchies separated them from sovereignty. They are privately owned by a duke or duchess. The two most important are the Duchies of Lancaster and Cornwall. Both have valuable land and property that is leased.
The Duchy of Lancaster belongs to the monarch while the Duchy of Cornwall belongs to the monarch’s heir.
Unlike the Sovereign Grant, income from duchies is considered private but is not exempt from the rules.
Although the monarch and his heirs are free to spend this income as they see fit, any profits from the sale of assets in the duchies must be reinvested.
private inheritance
There are also other private assets that are usually inherited.
These include some of the late Queen Elizabeth II’s most beloved estates, such as Balmoral Castle and the Sandringham estate.
The family also owns art and jewelry collections, but some are national property and cannot be sold. In addition, they have their private investments and savings.
Steer
Although the monarch and the Prince of Wales paid taxes, they were largely voluntary.
Tax rules are complicated and contained in a government memorandum, and generally the sovereign does not have to pay.
For example, although the monarch is taxed on private sources of income such as investments, he is not taxed on income from the Duchy of Lancaster. This is optional.