Royal | News - Prince Ricardo De La Cerda
Prince Harry is set to land a fortune within just days – and experts reckon he won’t have to pay a penny of tax.
On his 40th birthday on Sunday (Septembger 15), the Duke of Sussex is set to collect around £7million – the final chunk from his share of the late Queen Mother’s £19million trust fund.
And it is understood that Harry won’t be required to pay any tax on his windfall. Experts at investment company Stocklytics have explained how the Royal Family have sidestepped HMRC’ normal rules.
The experts commented: “With Prince Harry set to receive the final instalment of the Queen Mother’s trust fund, valued at £19 million, many Brits may be asking how much inheritance tax he’ll pay – especially as the latest judicial reviews have cost the taxpayer £500,000 each.”
“However, due to the way the Queen Mother’s estate was planned and how long she lived, it is likely HMRC will not receive a penny in inheritance tax.
“According to current regulations, inheritance tax only applies to a trust if it was set up within 7 years of the individual’s death. However, since the Queen Mother died in 2002, this trust would no longer be subject to inheritance tax.
“If the Queen Mother had died within the 7 years a trust is subject to inheritance tax, HMRC could have been owed up to £7.47 million.”
Harry is set to receive a larger share of the generous bequest than his older brother because of how finances are managed within the Royal Family.
As next in line to the throne, William will benefit from the huge wealth of the Duchy of Cornwall, a private estate that pays for the public, charitable and private activities of the King’s heir. As a result, Harry is likely to pick up slightly more than half of the £14million earmarked for the brothers.
The Stocklytics analysts added: “The Royal Family most likely would have had a detailed, long-standing financial plan to ensure that not only wealth was transferred from generation to generation, but was also completed in a tax efficient manner.
“It is understood the late Queen received the Queen Mother’s entire estate upon her death, mostly of which consisted of property. The Queen did not have to pay inheritance tax on her mother’s estate, valued at between £50m and £70m. This is due to a deal reached with John Major’s government, which meant the sovereign’s bequests are not liable to taxation.”