The government considers the duchy to be a crown body and therefore
exempt from paying
corporation tax. The tax position of the duchy has been challenged by British republicans.
[4] Following the ruling that the duchy was separate from Prince Charles for the purposes of regulation,
Republic, the campaign for an elected head of state, has asked
HM Revenue and Customs to investigate if the duchy should still be exempt from tax. The tax exemption is based on the assumption that the duchy estate is inseparable from the tax exempt person of Prince Charles, which is now open to question.
[47]
Since 1993, the Prince of Wales has voluntarily paid
income tax on the duchy income less amounts which he considers to be official expenditure.
[48] The Prince paid a voluntary contribution to the
treasury of 50% of his Duchy income from the time he became eligible for its full income at the age of 21 in 1969, and paid 25% from his marriage in 1981 until the current arrangement commenced in 1993. Tax is calculated after deducting official expenditure, the biggest source of which is the Prince's staff of about 110 who assist with his performance of official duties, including private secretaries and a valet working in his office at
Clarence House and at
Highgrove House. The official expenditure of the Prince of Wales is not audited by the National Audit Office.