entitled to the assets of the Privy Purse, and any capital gains arising on them. It is necessary therefore to identify the proportion of the assets of the Privy Purse itself which is to be regarded as private so that that proportion of any capital gains or losses can be taken into account.
6. The proportion is to be calculated each year in the same way as the proportion of the income of the Privy Purse which is to be taxed (paragraph 2 above). But because Duchy of Lancaster gains are to be disregarded, no account is to be taken of the Duchy of Lancaster income receivable by the Privy Purse, or of Privy Purse expenses except to the extent that they exceed Duchy of Lancaster income. The proportion of Privy Purse gains and losses to be taken into account in any year is thus:-
where
A =
Privy Purse Income, and
A-B
A
B = any excess of Privy Purse expenses over
Duchy of Lancaster income.
12
16
Page 75Page 76