As Prince Harry approaches his 40th day on Sunday, September 15, he’s set to receive a royal-sized cash – a staggering £7 million. His share is the last one to be drawn from the late Queen Mother’s £19 million trust account. And here’s the kicker: he wo n’t have to pay a penny of tax on it.
How does Harry sidestep inheritance tax?
It all boils down to some more clever financial planning, for those of us who wonder why HMRC is n’t knocking on Harry’s entrance for their cut. Researchers at Stocklytics, an investment firm, have shed light on how the Royal Family has skilfully dodged the tax invoice.
Some Scots may be wondering how much inheritance taxes Prince Harry will pay, according to the experts, who were cited by the Express as saying by the Express. ” Mainly as the latest administrative reviews have cost the taxpayer £500, 000 each”.
But according to Stocklytics, the Duke of Sussex wo n’t be parting with any of his windfall. It is likely that HMRC will certainly pay a penny in estate tax because of the way the Queen Mother’s property was planned and how much she lived, they explained.
A trust must be established within seven years of the benefactor’s dying in accordance with recent English rules. Since the faith is safe outside that screen since the Queen Mother passed away in 2002. Had she died early, HMRC may include cashed in with up to £7.47 million.
Why Harry gets more than William
Amazingly, Prince Harry is set to receive a bigger chunk of the dessert than his older brother, Prince William. This is n’t royal favoritism, though. It’s all thanks to the way the Royal Family’s money are structured.
As the heir to the throne, William stands to gain the huge success of the Duchy of Cornwall, a private land that finances the King’s president’s actions. Harry is likely to bag a little more than half of the £14 million that the boys cut because William has this future financial security, according to the Express.
A royal gap
Analysts for Stocklytics also noted that this is not the first moment the Royal Family has muddled around estate taxes. They revealed that when the Queen Mother passed away, her estate —valued between £50 million and £70 million —was transferred to Queen Elizabeth II without a tax bill. Why? A bargain struck with John Major’s state meant that the republic’s bequests are not answerable for taxes.
In short, Harry’s wealth is growing, and the taxpayer is n’t invited to the party. The Royal Family most likely had a thorough, long-standing financial strategy in place to ensure success was passed from generation to generation in a tax-efficient way, according to Stocklytics ‘ experts. A win for Harry, and a nice strategy for the Royals.
