PAC queries Duchy of Cornwall tax breaks

The Prince of Wales’ tax affairs were the subject of scrutiny by the Public Accounts Committee (PAC) this week.

The prince's private secretary William Nye, alongside Duchy of Cornwall finance director Keith Willis and Treasury officer of accounts Paula Diggle, appeared before MPs to answer why the prince does not pay any corporation or capital gains tax on his estate.

The Prince voluntarily paid £5m in tax on his £18m income from the duchy in 2011, at the full 50% rate after expenses.

The entire duchy estate is worth over £750m. The Prince paid £4m in income tax and VAT on...

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Comments
carnmores's picture

if all the expenses are allowable    1 thanks

carnmores | | Permalink

the public purse is surely better off if he pays higher rate tax?

bookmarklee's picture

"The entire Duchy estate is worth more than £750m"    3 thanks

bookmarklee | | Permalink

As accountants we know that this has no bearing on how much tax is payable on income. The figure is irrelevant. Companies don't pay tax by reference to their turnover or by reference to how valuable are their assets. Equally we don't have a wealth tax here and no one is seriously suggesting that we should do so.

Quite why the mainstream media bandy around such irrelevant figures is beyond me. Oh yes, I remember now. They don't understand tax and they want to get readers of controversial reports....

Landlords

Donald6000 | | Permalink

As far as I know the Duchy of Cornwall is mostly a landlord and most landlords I know are not corporations. Therefore why should the Duchy of Corrwall pay Corporation Tax. If he earns £18m pa and he pays £5m tax on it that seems pretty favourable to me. That's between 30 and 40 per cent.

Once again, God save us from the grandstanding Hodge who has an overblown estimate of her own importance.

 

listerramjet's picture

what a wind up

listerramjet | | Permalink

I can understand the political posturing of Hodge, but why would an accountancy site fall for the tax as a % of income ruse.  As has been pointed out, on the same basis Mitchell and Hodge both pay a lower rate than Prince Charles.  People who live in glass houses should refrain from throwing stones!

Throwing stones    1 thanks

Donald6000 | | Permalink

listerramjet wrote:

I can understand the political posturing of Hodge, but why would an accountancy site fall for the tax as a % of income ruse.  As has been pointed out, on the same basis Mitchell and Hodge both pay a lower rate than Prince Charles.  People who live in glass houses should refrain from throwing stones!

 

They can say these things on the basis that its easier to do what I say, rather than what I do. The idea of the Public Accounts Committee is to whip the public into a frenzy about what the politicians claim is the alleged wrongdoing of others, such as HRH Prince C, Stabucks, Amazon et al. The problem is that the politicians are doing all the self same things. Thus they are saying what they think the little man in the street would like to hear.

The only time these politicians will learn anything is when they are on the Liverpool Care Pathway. I can't wait.

 

 

 

Time for change's picture

I suppose these committee's

Time for change | | Permalink

are a visual sign, to we peasants, that MP's don't always have their snouts in the trough.

Well, not all the time, thankfully.

Red Leader's picture

Can't wait ...

Red Leader | | Permalink

... for Charlie to become king. If it wasn't for the fact that Wills comes next, King Charlie III could be the end of the monarchy.

He'll be a constitutional monarch that meddles in politics. They've survived this long by not meddling but Charlie just can't help himself.

JAADAMS's picture

The Duchy does good work...

JAADAMS | | Permalink

... it is little known and obviously not appreciated by Madam Hodge and her 'pals' that Charlie and the Duchy do good work. In my area of Dorset they have virtually given land to build hundreds of houses on - mostly for 'affordable homes'. The businesses in Poundbury are also looked after.