Question to the HM Treasury:

To ask His Majesty's Government whether the Duchy of Cornwall is liable to inheritance tax.

The Duchy of Cornwall is not liable to pay inheritance tax as it is a Crown body subject to Crown exemption.

The Prince of Wales receives the annual income generated by the Duchy of Cornwall, but is not entitled to the capital of the Duchy. While the Crown exemption applies to income received from the Duchy, the Prince of Wales pays tax voluntarily on his income received from the Duchy of Cornwall to the extent that is not used to meet official expenditure. The Prince of Wales is otherwise subject to taxation in the normal way. These arrangements are set out in The Memorandum of Understanding on Royal Taxation, which is available at www.gov.uk/government/publications/memorandum-of-understanding-on-royal-taxation-2023