Investment experts have revealed that Prince Harry's substantial $8.5 million inheritance will not be subject to tax deductions. The Duke of Sussex received this generous cash gift on his 40th birthday last month, thanks to arrangements made by his late great-grandmother, Queen Elizabeth, the Queen Mother. The late Queen Elizabeth II's mother had allocated $90 million into a trust fund for her family, with one of the stipulations being that Harry would access his share when he turned 40.
Initially, it was reported that Harry would have to pay tax on his earnings. However, investment firm Stocklytics has stated that the royal family has circumvented normal tax rules due to the meticulous planning of the Queen Mother's estate. 'With Prince Harry set to receive the final installment of the Queen Mother's trust fund, valued at $25 million, many Brits may be wondering how much inheritance tax he'll pay,' the firm told The Mirror. 'However, due to the way the Queen Mother's estate was planned and how long she lived, it is likely HMRC [His Majesty's Revenue & Customs] will not receive a penny in inheritance tax.'
They further explained, 'According to current regulations, inheritance tax only applies to a trust if it was set up within seven 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 $9.7 million,' they added.
Unlike his estranged brother Prince William, who received a ceremonial bell concert at Westminster Abbey on his milestone birthday, Harry reportedly received a larger share than William did on his 40th. It was previously reported that William and his wife, Princess Catherine, were left 'disgusted' at Harry's share of the inheritance.
'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,' the investment firm told the outlet. 'It is understood the late Queen received the Queen Mother's entire estate upon her death, mostly of which consisted of property.'
The hefty sum is a welcome addition to Harry and wife Meghan Markle's net worth, which currently sits comfortably at about $60 million. Their net worth was largely boosted thanks to the several high-profile projects they've taken on since quitting royal life in 2020 and moving to the US.
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