The Duke and Duchess of Sussex could face a stamp-duty bill of up to £1.8million if they bought a £10million home in Britain, a finance expert has claimed.
Prince Harry and Meghan Markle plan to return to the UK at the end of August. They will make their home in a non-royal residence outside of London, but will retain their homes in Montecito, California, and Portugal. It is understood there will be no change to Harry and Meghan's role and status as private individuals and non-working members of the Royal Family.
Expert warns on tax position
Molly Monks, F.I.P.A., insolvency specialist at Parker Walsh, warned that while arriving partway through the tax year could provide some advantages for the Sussex couple, the move is far from a simple tax masterstroke.
She said: "There is no magic date in August that allows someone to return to Britain without facing UK tax. The rules consider how many days you spend here, where your homes and family are based and several other connections with the country."
Meghan is an American citizen and would generally remain subject to US tax reporting on worldwide income after moving.
Stamp duty and cross-border obligations
The expert added that tax treaties and foreign tax credits can help prevent the same income from being taxed twice, but they do not remove the need for careful reporting in both countries.
The couple could also face a substantial Stamp Duty Land Tax bill if they purchase an English home while retaining overseas properties.
Ms Monks estimated that, on a £10million purchase, the bill would be approximately £1.61million if additional property rates applied, potentially rising to around £1.81million if the non-UK resident surcharge also applied. She said that the final position would depend on their circumstances at completion.
The expert added: "Their return may have been perfectly timed for the school year or for family reasons, but calling it perfectly timed for tax is premature.
"Maintaining homes and income across several countries can produce overlapping obligations rather than an easy loophole.
"Before selling an asset, purchasing a British home or changing where income is received, anyone in this position would need specialist cross-border tax advice. With sums this large, getting the timing wrong could be extremely expensive."
