King Charles Earns Over £1 Million from Duchy Land Linked to Scrapped HS2 Project

Published: 20 September — The English Chronicle Desk | The English Chronicle Online

King Charles’s private property holdings have reportedly earned more than £1 million from the sale of land intended for infrastructure linked to the northern leg of HS2, the high-speed rail project that has since been cancelled, the Guardian has revealed.

The Duchy of Lancaster, which manages the monarch’s private estate, received a total of £1,132,400 from sales of land earmarked for road works near a proposed hub station in Crewe, Cheshire. The deal highlights how the Duchy, while claiming to be “completely self-financing” and independent of taxpayer support, has profited from transactions associated with publicly funded infrastructure projects.

The Duchy, a historic estate providing the reigning monarch with private income since medieval times, owns extensive land surrounding Crewe Hall, a Jacobean mansion, which it acquired in 1936. Over the years, portions of this estate have been sold to accommodate roads, housing developments, and other projects. Thanks to its special status, the Duchy is largely exempt from business taxes, allowing it to maximise profits on such sales.

HS2, first proposed by the Labour government in 2009 and formally announced by the coalition government in 2012, was designed to connect Crewe to London in under an hour and provide high-speed services to Birmingham and Manchester. It was expected to boost the local economy by £750 million annually and bring an estimated 6.3 million additional passengers to the town by 2036.

Preparatory plans included significant upgrades to local infrastructure, which required acquiring land from the Duchy. Unlike other landowners, the Duchy could negotiate freely, as it is largely exempt from compulsory purchase laws. Payments for the plots were made between 2012 and 2017 under the late Queen Elizabeth II, and the proceeds from these sales are considered part of the Duchy’s private income.

The Duchy’s profits grew significantly during Queen Elizabeth II’s reign, though much of its landholdings were kept confidential even from Parliament. Upon inheriting the estate in 2022, King Charles did not pay inheritance tax, benefiting from the Duchy’s special crown status. The Duchy is also exempt from corporation and capital gains taxes, though the King voluntarily pays income tax on some earnings. Last year, the Duchy reported £26.5 million in income.

HS2’s cancellation of the northern leg in 2023, following escalating costs projected to reach £71 billion, has drawn criticism. Cheshire East Council described the decision as a “devastating blow,” noting the financial strain it placed on the authority, which later accepted a £25.3 million funding package from central government to alleviate pressures.

Documents from the Land Registry show that in 2012 the Department for Transport purchased several plots of Duchy land near the A500, a major local road, to accommodate planned rail works. One plot was acquired for £318,000, later transferred to the local council. In 2014, the council purchased additional Duchy land for £800,000 to facilitate road upgrades intended to link the town to the proposed HS2 hub. Subsequent improvements included widening roundabouts, adding cycle paths, and enhancing footways, all aimed at improving access prior to HS2’s arrival.

In response to scrutiny over Duchy dealings with public organisations, the estate announced in July it would “actively review” its policies. This followed investigations by Channel 4 Dispatches and the Sunday Times, which revealed contracts with taxpayer-funded bodies, including a 15-year agreement worth £11.4 million with an NHS trust for ambulance parking facilities on Duchy land in South London.

A spokesperson for the Duchy of Lancaster stated: “As with any landowner, the acquisition and disposal of property assets forms part of routine activities. Any such payments are invested back into the Duchy estate rather than as distributable income to the Monarch. The Duchy of Lancaster estate is not incorporated and therefore not subject to corporation tax. However, The King voluntarily pays income tax on income from the Duchy of Lancaster. Decisions on charity rents will be announced in due course.”

The revelations raise questions about the intersection of private royal finances and public infrastructure projects, highlighting how historic Crown estates continue to generate substantial revenue even amid large-scale government project cancellations.