£9bn inheritence

[Telecaster]

So the Duke of Westminster has inherited the family fortune, but reading about it it seems as though a lot of it is down to land owned in Mayfair and Belgravia, so is this theoretical/paper wealth that couldn't realistically be released?

I don't quite understand how someone can own land that loads of people live on, who pays rent on it, government from council tax or what? He's not a landlord in the traditional sense as I presume most people who live in Belgravia and Mayfair own their own pile, so how could he release the capital in this land when thousands of people live on it?

 

[NexusK]

Leasehold maybe.

 

[dowie]

So the Duke of Westminster has inherited the family fortune, but reading about it it seems as though a lot of it is down to land owned in Mayfair and Belgravia, so is this theoretical/paper wealth that couldn't realistically be released?

No it is very real wealth, those are real places - if you look on a UK monopoly board you might see 'Mayfair' for example as the most expensive location.

I don't quite understand how someone can own land that loads of people live on, who pays rent on it, government from council tax or what?

the leaseholders pay ground rent, pay to extend leases... and in some cases management fees if the freeholder also manages buildings etc..

He's not a landlord in the traditional sense as I presume most people who live in Belgravia and Mayfair own their own pile, so how could he release the capital in this land when thousands of people live on it?

He is a landlord in a very traditional sense... he's an aristocrat who owns a big expensive estate what more do you want in terms of 'traditional sense' of the word 'landlord'?

How could he (or rather the trust) release the capital in this land? The same way you would with any other asset - sell it.

 

[RaohNS]

Land owned by title. Aristocracy and all.

 

[Sliver]

Need more info before I come in with my six shooter and destroy the aristocracy.

 

[Stretch]

QI Fact : The duke was asked by the Americans if they could buy the US embassy building in Grosvenor Square, which the Grosvenor family own.

He said they can have it, so long as they return the state of Virginia, which was seized during the war of independence.

The Americans are still on a lease.

 

[Roar87]

QI Fact : The duke was asked by the Americans if they could buy the US embassy building in Grosvenor Square, which the Grosvenor family own.

He said they can have it, so long as they return the state of Virginia, which was seized during the war of independence.

The Americans are still on a lease.

Well, RIP to him, what an absolute lad

 

[edscdk]

How much inheritance tax did he pay on that?

 

[dowie]

How much inheritance tax did he pay on that?

probably nothing, he's presumably not technically inherited anything - the estate is still owner by the same trust(s) that owned it when his father was alive

 

[Stretch]

How much inheritance tax did he pay on that?

It's a good question.

http://www.telegraph.co.uk/tax/inheritance/inheritance-tax-and-how-the-dukes-of-westminster-avoid-it-on-the/

The question I have is how did this trusts operate. Normally, a trust pays a flat rate of 45% tax on all income.

If this was the case, fair play to them. However, if they managed to find a way to weasel out of the income tax too, it's a bit smelly.

Income and other benefits can be paid out to beneficiaries, who may or may not include the trustees, and who will be taxed on them as normal.

So all the income is paid out of the trust, at "normal" income tax rates.

 

[Dis86]

It's basically historical theft.

 

[englishpremier]

I suppose it's similar to when you see entire uk villages put up for sale. Though I doubt the people owning houses there are paying a lease. Perhaps the council pays it or some other arrangement.

 

[Malevolence]

QI Fact : The duke was asked by the Americans if they could buy the US embassy building in Grosvenor Square, which the Grosvenor family own.

He said they can have it, so long as they return the state of Virginia, which was seized during the war of independence.

The Americans are still on a lease.

It was actually a lot more than just Virginia. He asked them to return all lands stolen from his family after the War of Independence, which would've included not just vast swathes of Virginia but also Maine and most of New York.

 

[Newbfail]

Been watching some videos of the guy today, bar his addiction to hookers, he seemed a decent bloke

 

[Eurofighter]

Gotta love Capitalism.

 

[Maccapacca]

He did more for normal people and charity than all the moaners put together. Easy lazy target.

The Duke supports charities and other institutions personally, by patronage, and has a very wide range of interests in this field. He has been a member of The Prince’s Council of the Duchy of Cornwall, Chancellor of the University of Keele, Chancellor of Manchester Metropolitan University and is presently Chancellor of the University of Chester. He was President of the RNIB for 25 years, President of the St John Ambulance for 10 years and President of the NSPCC North West Full Stop Appeal. The Duke is also a Patron of The Blue Cross Animal Hospital, London’s Air Ambulance and Arthritis Care.

Through his charitable trust, the Westminster Foundation, the Duke supports social deprivation and particularly its impact on young people, indeed since announcing its new strategy at the beginning of the year, the Westminster Foundation is concentrating on issues surrounding poverty in the UK and this year grant-making is focused on two particular themes: supporting communities and youth homelessness.

The Duke also supports a range of military charities and he chairs the Nuffield Trust for the Armed Forces. The Duke is a countryman and not only enjoys country sports, but takes an interest in and supports rural issues through organisations such as The Prince’s Countryside Fund, the Game and Wildlife Conservation Trust and the Atlantic Salmon Trust.

Since 2009 the Duke has been pursuing his initiative to create a Defence and National Rehabilitation Centre which involves building a 21st century clinical rehabilitation facility for the armed forces and the nation in the middle of England. He is personally leading the fund raising campaign to make this happen.

 

[Telecaster]

He is a landlord in a very traditional sense... he's an aristocrat who owns a big expensive estate what more do you want in terms of 'traditional sense' of the word 'landlord'?

I meant as in someone who owns a house and then rents it out, are you saying he personally owns all the property outright in Mayfair and Belgravia and just rents it out?

 

[dowie]

I meant as in someone who owns a house and then rents it out, are you saying he personally owns all the property outright in Mayfair and Belgravia and just rents it out?

He (or rather the trust)owns the freehold for those areas, some people own leaseholds on buildings/properties there for which they'll pay ground rent and or maintenance fees to the estate and which will revert back to the estate when the lease runs out (if it isn't renewed). The estate has plenty of buildings etc.. itself too and is involved in property development.

He's very much a 'landlord' in the traditional sense.

 

[dowie]

He did more for normal people and charity than all the moaners put together. Easy lazy target.

He flew out to Iraq when I was over there - seemed like quite a down to earth guy.
IIRC he originally joined the TA as a private soldier when he couldn't join the regular army then later got commissioned and rose through the ranks to become the highest ranking reservist officer (prior to the hooker scandal). I think he's on record as basically saying quite frankly that he was promoted because of who he was.

 

[flowrider99]

It's basically historical theft.

Who did they steal it from?

My undersranding is that the land was bought in the 1600's when it was just swamp and pasture and was developed by the Duke of Westminsters ancestors into what it is today.