Prince Harry’s finances to plunge due to tax impact post royal life split
LONDON (AFP): The Duke and Duchess of Sussex are on the road to inherit tax payments, greater than they might have expected, if they choose to abdicate from their role as senior royals of Queen Elizabeth II’s court, reported Daily Mail.
The financial impact could very well have “stark implications” on Harry due to amounting bills and taxes post his and his wife, former American actor Meghan Markle’s decision to step back as senior royals.
According to official sources, Prince Harry’s visit to Sandringham, next week will be a “reality check moment” for the 35-year-old, as he will be presented in person in front of the Queen and Prince William. Meghan will be partaking in the discussion via a telephonic conversation, the British tabloid said.
A source close to the Queen told the Daily Mail that a solution that is “compatible with taxpayers, compatible with reality and compatible with the Queen” is being sought out.
During the meeting in Sandringham,the prince is said to receive a reality check with potential “double tax” on any commercial income. As well as, taxes on maintenance for Frogmore Cottage, his home in Windsor, if he and his wife abdicate from their role as senior royals.
The Daily Mail estimates that the overall bill could potentially be over millions of pounds. Prince Harry will also be double taxed if he spends more than 183 days in Canada in one stretch of time.
As a result of these potentially mounting bills, Harry might have to make a drastic decision, either to give up his UK residency, or limit his time in Canada. If he does not then he might be double-taxed on any and all commercial income he earns, from both Britain, as well as Canada.
The Duchess of Sussex already pays American taxes on any income she earns overseas as an US citizen and this could potentially add to the overall cost of living, post royal life.
The couple might also be charged with hefty bills on any kind of funding they receive from Prince Charles’s estate and have to pay commercial level taxes for Frogmore Cottage
Currently the couple also receive funding, amounting to almost £2.4 million, mostly from Prince Charles.
A royal source told The Mail on Sunday, “This meeting will give the Duke and Duchess an unvarnished look at the full implications of their choices.”
“Lots of assumptions have been made about how things can work, but this will be the time for workable decisions to be made in the full knowledge of the consequences and implications, however unappealing,” the source added.