Charles agrees to give up feudal dues that had been revived by his father; in return, the English Parliament grants him an annual income of one million  two hundred thousand pounds generated largely from customs and excise dues with which to run the government.

The grant, however, will prove to be insufficient for most of Charles's reign.

The aforesaid sum is only an indication of the maximum the King is allowed to withdraw from the Treasury each year; for the most part, the actual revenue is much lower, which will lead to mounting debts, and further attempts to raise money through poll taxes, land taxes and hearth taxes.

Charles's joy at the Restoration is tempered by the deaths in the latter half of 1660 of his youngest brother, Henry, and sister, Mary, of smallpox.

At around the same time, Anne Hyde, the daughter of the Lord Chancellor Edward Hyde, reveals that she is pregnant by Charles's brother, James, whom she had secretly married.

Edward Hyde, who had not known of either the marriage or the pregnancy, is created Earl of Clarendon and his position as Charles's favorite minister is strengthened.

The Convention Parliament is dissolved in December 1660.