Prince Charles and Duchy of Cornwall’s tax affairs under scrutiny

Prince Charles and the Duchy of Cornwall’s tax affairs are due to be examined by an influential set of MPs in the UK.

Prince of Wales’ most senior official, William Nye, has been called to give evidence to the Public Accounts Committee on Monday afternoon.

The committee will consider whether Prince Charles is paying his fair share of tax and explore why the duchy does not pay corporation tax or capital gains tax.

It is only the second time that royal accounts have been examined this way.

The last time Prince Charles’s representatives came before the Public Accounts Committee they were accused of performing financial “jiggery pokery” and he was said to be the recipient of the “best housing benefit scheme in the world”.

The Duchy of Cornwall provides the heir to the throne with a private income.

Royal officials argue the duchy is a private landed estate, not a corporation or a public body, so it is exempt from capital gains tax.

They also say Prince Charles pays income tax on the money he receives from the hereditary estate after business expenses have been deducted.

Earlier this month, the prince faced calls from Andrew George, the Liberal Democrat MP for West Cornwall, to “come clean” about the Duchy of Cornwall’s tax arrangements.

The duchy is a £762 million ($1.2 billion) estate of about 131,000 acres, mostly in the south-west of England, from which the prince received a record £19 million ($30 million) last year.

Clarence House has said public funding for the Prince of Wales fell by £1 million to £1.2 million in the last financial year, out of a total income of £20.2 million.