- The Crown Estate's income goes to the UK government, which gives the royal family an annual payment.
- The assets of the Crown Estate are worth about $17 billion.
King Charles III inherited an extensive portfolio of assets after his mother, Queen Elizabeth II, died on September 8.
The Crown Estate is a collection of property and other holdings belonging to, but not managed by, the monarch.
The Duchy of Lancaster and the Duchy of Cornwall were established to provide a source of independent income to the sovereign and the heir apparent to the throne, respectively.
Insider reported that the King won't have to pay inheritance tax on the Duchy of Lancaster, while William, now the Prince of Wales, inherits the Duchy of Cornwall from his father.
Who owns the Crown Estate?
The sovereign – the King, or Queen – owns the Crown Estate.
Since 1760, the sovereign has surrendered the estate's income to the Treasury. George III was behind the arrangement by which the government makes a fixed annual payment called the sovereign grant to the royal family.
While the King technically owns the Crown Estate by virtue of being on the throne, he is not involved in its management.
The monarch is also permitted to sell the estate's properties. In contrast, the residences at Balmoral and Sandringham are part of the King's private assets.
The estate is worth $17.7 billion (£15.6 billion) according to a report it released in June. It includes more than 190,000 acres of rural land, as well as offices, and retail parks across the country and large parts of central London around including St James's and Regent Street.
The Crown Estate's portfolio also includes parts of the shoreline and seabed, forests, farms and the Windsor Estate. It stretches across 15,800 acres and includes the Ascot racecourse, but not Windsor Castle itself. It and other occupied palaces such as Buckingham Palace are managed through the royal household.
After George III decided to surrender the Crown Estate's income, the government set up an independent board to manage it and give the monarch 25% of the profits – formerly known as the Civil List.
The list was replaced in 2011 by the Sovereign Grant Act, which determines the annual funding given to the monarch to support official business and duties as the head of state. The funds cover staffing costs and overheads for the official household, maintenance of the royal palaces and travel costs for royal engagements.
The Sovereign Grant for 2022-23 is £86.3 million – the same as the previous 12 months.