<P> In 2017, the Paradise Papers revealed that the Duchy held investments in two offshore financial centres, the Cayman Islands and Bermuda . Both are British Overseas Territories of which Queen Elizabeth II is monarch, and nominally appoints governors . Britain handles foreign policy for both islands to a large extent, but Bermuda has been self - governing since 1620 . The Duchy's investments included First Quench Retailing off - licences and rent - to - own retailer BrightHouse . Labour Party Leader Jeremy Corbyn posited whether the Queen should apologize, saying anyone with money offshore for tax avoidance should "not just apologise for it, (but) recognise what it does to our society". A spokesman for the Duchy said that all of their investments are audited and legitimate and that the Queen voluntarily pays taxes on income she receives from Duchy investments . </P> <P> The Duchy of Cornwall is a Crown entity holding land and other assets to produce an income for the monarch's eldest child . The Duke of Cornwall (Charles, Prince of Wales) receives revenue towards charitable work and official activities, supported by The Queen's Grant - in - aid funding to provide assistance with official travel and property . These financial arrangements also cover the official expenditure of some members of his immediate family . The Duchess of Cornwall, The Duke and Duchess of Cambridge and Prince Harry all have their official expenses paid from Duchy income, assisted by grants - in aid from The Queen . For the fiscal year 2011 - 12 the Duchy was valued at £ 728 million with an annual profit of £ 18.3 million paid to the Prince . </P> <P> The Duke of Edinburgh receives a parliamentary annuity of £ 359,000 per year from the Treasury . In the past some other members of the British royal family also received funding in the form of parliamentary annuities . The Civil List Act 1952 provided for an allowance to Princess Margaret as well as allowances to the queen's younger children among others . The Civil List Act 1972 added further members of the royal family to the annuity list . By 2002 there were eight recipients of parliamentary annuities (all children or cousins of the Queen) receiving a combined total of £ 1.5 million annually . Between 1993 and 2012 the Queen voluntarily refunded the cost of these annuities to the Treasury . The Sovereign Grant Act 2011 abolished all of these other than that received by the Duke of Edinburgh . Subsequently the living costs of the members of the royal family who carry out official duties, including the Princess Royal, the Duke of York, and the Earl and Countess of Wessex, have mainly been met through the Queen's income from the Duchy of Lancaster . </P> <P> The Crown has a legal tax - exempt status because certain acts of parliament do not apply to it . Crown bodies such as The Duchy of Lancaster are not subject to legislation concerning income tax, capital gains tax or inheritance tax . Furthermore, the Sovereign has no legal liability to pay such taxes . The Duchy of Cornwall has a Crown exemption and the Prince of Wales is not legally liable to pay income tax on Duchy revenues . </P>

Where does the money come from to support the royal family