Privy Purse

The Privy Purse is the British Sovereign's private income, mostly from the Duchy of Lancaster. This amounted to £13.3 million in net income for the year to 31 March 2009. The Duchy is a landed estate of approximately 46,000 acres (200 square kilometres) held in trust for the Sovereign since 1399. It also has 190 miles (500 kilometres) of foreshore. The Duchy is valued at approximately £322 million in 2009. The land is organised into the Lancashire Survey, the Yorkshire Survey, the Crewe Survey, the Nedwood Estate and the South Survey. The Sovereign is not entitled to the Duchy's capital, but the net revenues of the Duchy are the property of the Sovereign in right of the Duchy of Lancaster. While the income is private, the Queen uses the larger part of it to meet official expenses incurred by other members of the British Royal Family. Only the Queen and the Duke of Edinburgh receive payments from Parliament that are not reimbursed by the Queen.

The Chancellor of the Duchy of Lancaster, who is the equivalent of the chairman of the trustees, has for the past several centuries always been a Government minister, although this is not a requirement.

The Keeper of the Privy Purse looks after the Sovereign's personal financial affairs. His title is derived from the Privy Purse (an embroidered bag borne by the Keeper at a coronation) which contrasts with his Department's present-day use of computers and up-to-date accounting procedures. He manages the revenues which come from the Duchy of Lancaster. The Privy Purse meets both official expenditure incurred by The Queen as Sovereign and private expenditure.

In recent years the office of Keeper has been held jointly with that of Treasurer to the Queen, who is responsible for the use of the Civil List, funds used to meet official expenditure relating to the Queen's duties as Head of State. He also oversees the grant-in-aid from the Royal Household for the maintenance of the occupied Royal Palaces and for Royal travel. He is also responsible for the property maintenance of the Occupied Royal Palaces (such as Buckingham Palace and St James' Palace) and their gardens, for the financial aspects of Royal travel, for personnel matters in the Royal Household, for the Queen's private estates (which include Balmoral Castle and Sandringham House) and for the commercial activities of the Royal Collection Trust (for which annual accounts are published).

...
Wikipedia