Meghan Markle’s US citizenship could end up costing the Royal Family millions in tax.
The new Duchess of Sussex is still a US citizen, despite marrying Prince Harry earlier this year and formally applying to become a British subject, a process which could take several years.
According to News.com, this means she still has to pay tax in the US on any income earned or allowances received. As a result, all royal proceeds enjoyed by Markle could be liable for tax, including gifts, homes and even clothes, as well as her own US$4.9 million fortune, which was earned during her acting career.
As her spouse, Prince Harry’s own income could also be affected, including the US$25.3 million trust fund set up by Princess Diana and the Queen Mother. The Prince receives around US$19,737 per year from the fund and already pays annual income tax on it in the UK.
But because the money is now also available to his wife, it may count towards her income too. Even Prince Charles and the Queen could be caught up in the tax troubles, as they both provide financial support to the young royals as well.
Royal staff told the Sunday Express that the situation was unprecedented. “We’re looking at a level of financial exposure the Royal Family has never had to face before. It’s the royal household’s worst nightmare...everything has to be declared,” they said.
This means they could be subject to a level of fiscal openness and scrutiny that they are not used to. “There is a very comfortable relationship between the Palace and Her Majesty’s Revenue and Customs (HMRC) where the royal family volunteers to pay some tax and the taxman is very grateful,” the spokesperson added.
According to the Mirror, the Royal Family intends to hire a number of US tax experts to help them navigate the situation and prepare Meghan’s tax returns.
Kensington Palace has previously said that Markle was going through the “normal visa process” to become a British citizen via a ‘Leave to Remain’ visa, which enables holders to stay in the UK indefinitely with no limit on their length of stay, employment or educational opportunities.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER ARTICLES THAT MAY INTEREST YOU
US federal law changes impact broad range of taxpayers
IRS uses technology to uncover $10bn in US tax fraud
US Republicans call for more tax cuts
Meghan Markle’s US citizenship could end up costing the Royal Family millions in tax.
The new Duchess of Sussex is still a US citizen, despite marrying Prince Harry earlier this year and formally applying to become a British subject, a process which could take several years.
According to News.com, this means she still has to pay tax in the US on any income earned or allowances received. As a result, all royal proceeds enjoyed by Markle could be liable for tax, including gifts, homes and even clothes, as well as her own US$4.9 million fortune, which was earned during her acting career.
As her spouse, Prince Harry’s own income could also be affected, including the US$25.3 million trust fund set up by Princess Diana and the Queen Mother. The Prince receives around US$19,737 per year from the fund and already pays annual income tax on it in the UK.
But because the money is now also available to his wife, it may count towards her income too. Even Prince Charles and the Queen could be caught up in the tax troubles, as they both provide financial support to the young royals as well.
Royal staff told the Sunday Express that the situation was unprecedented. “We’re looking at a level of financial exposure the Royal Family has never had to face before. It’s the royal household’s worst nightmare...everything has to be declared,” they said.
This means they could be subject to a level of fiscal openness and scrutiny that they are not used to. “There is a very comfortable relationship between the Palace and Her Majesty’s Revenue and Customs (HMRC) where the royal family volunteers to pay some tax and the taxman is very grateful,” the spokesperson added.
According to the Mirror, the Royal Family intends to hire a number of US tax experts to help them navigate the situation and prepare Meghan’s tax returns.
Kensington Palace has previously said that Markle was going through the “normal visa process” to become a British citizen via a ‘Leave to Remain’ visa, which enables holders to stay in the UK indefinitely with no limit on their length of stay, employment or educational opportunities.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER ARTICLES THAT MAY INTEREST YOU
US federal law changes impact broad range of taxpayers
IRS uses technology to uncover $10bn in US tax fraud
US Republicans call for more tax cuts
