(1)Where the Duke of Cornwall for the time being is under 18 for any period in a financial year—
(a)the amount of the Sovereign Grant for that year is reduced by an amount equal to 90% of the income account net surplus of the Duchy of Cornwall for that period, and
(b)the income of the Duchy of Cornwall for that year, up to the amount by which the Sovereign Grant is reduced under paragraph (a), is to be at the disposal of Her Majesty.
(2)Where the Duchy of Cornwall is vested in Her Majesty for any period (“the relevant period”) in a financial year (and Her Majesty is accordingly entitled to its income)—
(a)the amount of the Sovereign Grant for that year is reduced by an amount equal to the income account net surplus of the Duchy of Cornwall for the relevant period, and
(b)the Treasury is to pay a grant to any person who is the heir to the throne in the relevant period.
(3)The amount of the grant paid to any person is—
(a)for any period (falling within the relevant period) when the person is the heir and is aged 18 or over, the amount by which the Sovereign Grant is reduced for that period, and
(b)for any period (falling within the relevant period) when the person is the heir and is under 18, 10% of the amount by which the Sovereign Grant is reduced for that period.
(4)Where the grant under subsection (2)(b) would (apart from this subsection) be paid to a person who is under 18 at the time of payment, the grant is to be paid to the Royal Trustees and is to be held by them on trust for the person on such terms as the Treasury may direct.
(5)Any reduction in the amount of the Sovereign Grant under this section is to be ignored for the purposes of—
(a)section 3 (the Reserve Fund), and
(b)Step 3 in section 6(1) (determination of amount of Sovereign Grant).
(6)Where the amount of the Sovereign Grant for a financial year is reduced under this section, references in section 2(7)(b) (income of the Royal Household) and section 11 (maintenance of Royal Palaces) to the Sovereign Grant include income of the Duchy of Cornwall for that year.
(7)For the purpose of determining the income account net surplus of the Duchy of Cornwall for part of a financial year, the income account net surplus of the Duchy for the whole of that year is to be apportioned equally in respect of each day of that year.
(8)For the purpose of determining the amount by which the Sovereign Grant is reduced for part of the relevant period, the reduction under subsection (2)(a) is to be apportioned equally in respect of each day of that period.
(9)For the purpose of making reductions under subsection (1)(a) or (2)(a), and paying grants under subsection (2)(b), in respect of a financial year (or part of a financial year)—
(a)until the accounts of the Duchy of Cornwall for that year have been submitted to the Treasury pursuant to section 2 of the Duchies of Lancaster and Cornwall (Accounts) Act 1838, the Treasury is to act on the basis of its estimate of the amount of the income account net surplus of the Duchy of Cornwall for that year, and
(b)any necessary adjustments (including any payments or repayments) are to be made after those accounts have been submitted.
(10)The grant under subsection (2)(b) falls to be paid out of money provided by Parliament.
Modifications etc. (not altering text)
C1For duration of Sovereign Grant provisions (ss. 1-9, 11, 12) see s. 16(1)-(3)
C2S. 9: the Sovereign Grant provisions are continued (11.9.2022) and will now expire 6 months after the end of the present reign by The Sovereign Grant Act 2011 (Duration of Sovereign Grant Provisions) Order 2022 (S.I. 2022/954), arts. 1(2), 2