Residents did not pay taxes to the United Kingdom and had to pass through customs when they travelled to and from Lundy Island. Although the island was ruled as a virtual fiefdom, its owner never claimed to be independent of the United Kingdom, in contrast to later territorial "micronations".
Following the death of Harman's son Albion in 1968, Lundy was put up for sale in 1969. Jack Hayward, a British millionaire, purchased the island for £150,000 and gave it to the National Trust, who leased it to the Landmark Trust. The Landmark Trust has managed the island since then, deriving its income from arranging day trips, letting out holiday cottages and from donations.
The island is visited by over 20,000 day-trippers a year, but during September 2007 had to be closed for several weeks owing to an outbreak of Norovirus.
A naval footnote in the history of Lundy was the wreck of the Royal Navy battleship HMS Montagu. Steaming in heavy fog, she ran hard aground near Shutter Rock on the island's southwest corner at about 2:00 a.m. on 30 May 1906. Thinking they were aground at Hartland Point on the English mainland, a landing party went ashore for help, only finding out where they were after encountering the lighthouse keeper at the island's north light.
Strenuous efforts by the Royal Navy to salvage the badly damaged battleship during the summer of 1906 failed, and in 1907 it was decided to give up and sell her for scrap.
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