The Duke of Sussex will turn 40 on Sunday and will receive the final chunk of his share of the late Queen Mother’s £19million trust fund in the days following his birthday
Prince Harry is about to hit the jackpot without paying a penny in taxes. Reports reveal that the Duke of Sussex, on his rapidly approaching 40th birthday this Sunday (September 15) is due to pocket a cool £7million the remaining slice of the Queen Mother’s hefty £19m trust fund.
In a surprising twist for UK taxpayers, financial gurus at Stocklytics have laid bare the royal loopholes that protect Harry’s inheritance from the taxman’s grasp.
Experts have speculated: “With Prince Harry set to receive the final instalment of the Queen Mother’s trust fund, valued at £19m, 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,” reports the Express.
“If the Queen Mother had died within the seven years a trust is subject to inheritance tax, HMRC could have been owed up to £7.47m.”
The royal financial arrangements mean Harry could end up banking more than big brother Prince William from the family fortune.
William, as the next in line for the throne, is set to inherit the vast fortunes of the Duchy of Cornwall, a private estate that funds the public, charitable, and personal endeavours of the King’s heir. Consequently, Harry is expected to receive just over half of the £14 million designated for the siblings.
Stocklytics analysts have pointed out: “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.”
They further understand that: “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.”
