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The Duchy of Cornwall |
As an unintended sequel to my previous blog on The Crown, my
discovery of Bona Vacantia in the Friday 24
th Guardian [I
allow myself one newspaper per week as more would mean I did nothing
else!!] is astonishing! Bona Vacantia means ‘
vacant goods’
and is the name given to ownerless property normally left after a
death without a will. In most of England and Wales, the assets of
those who die without a will, and where no identifiable relatives can
be found, are transferred to the Treasury to be spent on public
services, which all seems impeccable. However, under a custom rooted
in mediaeval times, two hereditary estates or duchies, which belong
to the Crown, can collect
bona vacantia; these estates
can also collect assets owned by companies at the point of their
dissolution. In effect, the Treasury Solicitor acts for the Crown to
administer the estates of people who die intestate (without a Will)
and without known kin (entitled blood relatives) and collect the
assets of dissolved companies at the point of their dissolution, and
other various ownerless goods in England and Wales.
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Duchy of Lancaster |
When I first read of the above, I thought what a
charming relic from mediaeval times when the King really was at the
pinnacle of power. It was only when I discovered more that I began to
slowly give way to astonishment. One of the two
bona vacantia
regions is the Duchy of Cornwall; the other is the Duchy of
Lancaster. Both generate income for the Crown and are, in effect,
real estate empires that manage swathes of farmland, castles, hotels,
offices, warehouses, shops and urban properties, including, the
article claims, some of London’s prime properties. Neither Duchy
pays corporation tax nor capital gains tax which confers a
considerable commercial advantage, and together, both Duchies have
generated for the Royal family more than £1.2 billion in the last 60
years, Since inheriting the Duchy of Lancaster from his mother, this
first annual income has generated £26 million for Charles.
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Queen Elizabeth and three heirs to the throne. Charles; son Will; grandson George |
Both Duchies claim that, after costs are deducted,
the profit goes to charities. The Duchy of Lancaster’s website
names three charities which benefit from its
bona vacantia excess
finance. However, its accounts suggest that only 15% of the
£61million it has collected during the last decade has indeed been
donated to charities. A large proportion of the profits appear to go
to the renovation of commercial properties in its portfolio. This
practice has accelerated since May 2020 when Policy S9 was introduced
which omits mention of ‘
bona vacantia’, instead, referring
to
special costs which can be used for the public good. Under
this worthy umbrella lie the Duchy properties, the fabric of which
can be restored, repaired, and protected from funds generated by
bona
vacantia. Under a broad definition, [broader than that for listed
properties] Duchy-owned properties qualify for funds if they fit
within a further seven categories including buildings in a
conservation area; a site of special scientific interest; AONB [Areas
of Outstanding Natural Beauty]; are of local historical importance.
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Lancaster House, Lancaster Gate, London. H.Q. of the Duchy of Lancaster. The Duchy flag is shown. |
Charles re-affirmed his mother’s decision to spend
the assets left without wills, with the primary intention of
supporting local communities; protecting the sustainability and
biodiversity of the land; and care for properties in the two Duchies;
this income must not benefit the Privy Purse. The primary aim is to
restore and protect buildings and land on Duchy estates for future
generations. Before the income from bona vacantia is
available for donation to charities, money is allocated to a fund in
case relatives make future claims plus any costs associated with the
upkeep of public buildings and those of architectural importance, are
deducted.
In the same edition of The Guardian, Maeve
McClenaghan, Henry Dyer and Rob Evans had done some most effective
detective work in identifying people who had indeed died intestate,
with no apparent relatives and whose assets had gone to one of the
Duchies. They identified one man who had died intestate leaving
£230,000 and mention examples of higher sums but most inheritances
are relatively small and average £12,000 according to Duchy
accounts. The British Royal Family is wealthy and it appears that one
small but steady income stream has gone to the Duchies via bona
vacantia. The history of the Duchies is so interesting and
identifies how the Royal Prerogative has benefitted the Duchies from
their beginnings, as intended . In 1265 Henry 111 quashed a revolt by
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King Henry 111 with Westminster Abbey in the background |
feuding
lords, seizing the lands of the leading rebel and donating them to
his son, Edmund. These lands, mainly in the North, became known as
the Duchy of Lancaster and in charters in 1399 and 1485, the then
monarch stipulated that the Duchy’s profit should go to the person
on the throne as should that of the Duchy of Cornwall. This power of
the monarch to claim all the assets of those who died without an heir
continued until 1830 when it was stopped, but with the caveat that
the Duchies of Lancaster and Cornwall would retain their ancient
privileges. Unbelievably, this Victorian legislation was re-affirmed
in 1925 in an act of apparent rubber-stamping. Interestingly, there
appears to have been no Parliamentary discussion on the subject nor
is there any record of the decision in the National Archives.
Although it is true that King Charles does not
personally gain from bona vacantia, his ‘business’ benefits
hugely and furthermore, in a system where no appropriate tax is paid
by the monarchy. It seems ridiculous that a custom dating from the
14th/15th centuries, an era of absolute monarchical power, should now
legally continue to benefit the current regal incumbent! Another nail
in the Royal coffin I would say.
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Simon de Montfort, Earl of Leicester. After the overthrow of the King, de Montfort convened the first authentic Parliament with 2 knights from each county; clergymen; 2 representatives from each major town and the Cinque Ports. There was an expenses' system to help those attending! On January 20th. 1265 in the Palace of Westminster. |
Historical background to the existence of the two Duchies.
A major rebellion against the monarch began in 1258 when a group of barons seized the reins of government from the King and governed by a council in his name. This became known as the First Barons' War and ended with the signing of Magna Carta in 1215 by a reluctant King John. Henry III (1216–1272) came to the throne and over the next few years the country was plunged into further civil war [the Second Barons' War as Simon de Montfort, Earl of Leicester, sought to establish control of the country. His rule was ended in 1265 in the bloody mess that was the battle of Evesham where
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Here were buried the remains of Simon De Montfort, Earl of Leicester. Pioneer of representative government who was killed in the Battle of Evesham on August 4th 1265.
This stone brought from his birthplace The Castle of Montfort-Lamaury in France was erected to commemorate the seven hundredth anniversary of his death.
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Oliver Cromwell who seized the two Duchies from the Crown during his Commonwealth. |
This Montfortian revolution was the greatest assault on royal power in England before the 17th century when the English civil wars between Royalists and Parliamentarians led to the overthrow of the monarchy and the execution of Charles 1 in 1649. The Duchies and Crown lands were seized by Oliver Cromwell, and a fire sale of their assets commenced to raise money for the new Commonwealth. It was a brief interregnum when royal wealth was transferred to the nation. Parliament passed an act prohibiting the king’s heirs from holding crown property, overturning the status of Duchies as private inheritance. But the Duchies were back in royal hands 11 years later, after the restoration of the monarchy with Charles II.