APPENDIX B
RULES FOR DETERMINING THE INCOME OF THE DUCHY OF CORNWALL ON WHICH TAX IS TO BE PAID
1.
General Rule
The amount of income from the Duchy of Cornwall which is to be taxed in any year is the net surplus earned in the year in question, whether or not paid in full to The Prince of Wales in that year less the aggregate of the expenses listed in paragraph 3 incurred in that year.
2. If in any year the amount to be deducted in respect of the expenses listed in paragraph 3 exceeds the net surplus earned by the Duchy of Cornwall for the year in question, the excess may be carried forward and set against Duchy income for the following year or, if necessary, any subsequent year.
3. Expenses to be taken into account
(i) Payments made to meet official expenses incurred by The Prince of Wales or The Princess of Wales, in assisting The Queen in carrying out duties as Head of state, which would have fallen within the usual scope of Orders made by the Treasury under Section 199 of the Income and Corporation Taxes Act 1988 (expenses necessarily incurred and defrayed from official emoluments) if they had been met from Parliamentary or Section 3 annuities
(ii) The proportion of the costs of maintaining and running the property and estate at Highgrove which relates to its use for official purposes. No account is to be taken of costs relating to farms, forestry or sporting facilities
(iii) The cost of uniforms but not other clothing incurred by The Prince of Wales or The
Princess of Wales for official purposes
(iv) Any expenses not falling under any of the preceding paragraphs which are incurred by The Prince of Wales or The Princess of Wales in an official capacity or in connection with official duties
Footnote: No question of capital gains tax arises in relation to the Duchy of Cornwall since The
Prince of Wales is not entitled to its capital or capital gains.
Printed in the United Kingdom for HMSO
Dd5060641 2/93 C11 Ord228521
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