This is a rewrite of a piece originally written in 2015 and long overdue given the number of developments in this area since then.
Established in 1961, the Crown Estate is a land and property portfolio managed on behalf of the monarchy.
The total value of the Crown Estate’s net assets in 2020-21 was £15.2billion (£14.4billion of which being property), and it generated around £269million in profits – which go directly to the UK Treasury1.
The legal owner of the Crown Estate’s assets is the reigning monarch (“in right of the Crown”) as it consists of large portions of estates and lands held as crown property for generations, except for property that’s personally owned by the monarch (i.e. the Balmoral Estate).
Some of this land is incredibly lucrative, such as:
- Large tracts of the West End of London (such as the area in and around Regent Street and St. James’ Palace).
- The Windsor Estate, including Ascot Racecourse, Windsor Castle and Windsor Great Park.
- Pretty much all of the UK’s territorial sea bed and continental shelf.
- Around 55% of the UK’s foreshore (and around 65% in Wales).
- Large tracts of land (particularly rural Scotland) where the crown has gaming and mineral rights.
Revenues from the Crown Estate form most of the income of the Royal Household. Since 2010, the Royal Household has received a Sovereign Support Grant – established under the Sovereign Grant Act 2011. The Sovereign Support Grant is worth 25% of the net profits of the Crown Estate. The remainder of the profits goes to the UK Treasury.
The share was originally 15%, but this was temporarily increased in 2017-18 to pay for the refurbishment of Buckingham Palace.
In 2020-21, the Sovereign Support Grant was worth £85.9million2. This money is used to support the Royal Household itself and pay for the maintenance of royal estates and events like garden parties. The support grant isn’t taxed (as it’s considered official state expenditure) and any money that goes unspent is put into a reserve.
1: Crown Estate, Annual Report 2020-21. Available at: https://www.thecrownestate.co.uk/media/3918/2021-annual-report-interactive_v2.pdf
2: The Sovereign Grant & Sovereign Grant Reserve, Annual Report 2020-21. Available at: https://www.royal.uk/sites/default/files/media/sovereign_grant_report_2020-2021_0.pdf
