Reports that Harry, Meghan and their children are preparing to resettle in the UK have raised a less discussed question: what the move means for their tax bill. UK rules reward expatriates who stay away for a full ten tax years with valuable relief, and tax advisers say the couple's six year stint abroad falls short of that threshold.
Dhana Sabanathan, a tax and succession partner at law firm Michelmores, told Fortune that a ten year absence would have unlocked four years of relief on foreign income and gains after their return, along with reduced exposure to UK inheritance tax, which can run as high as 40 percent. With the couple's combined wealth estimated near $60 million, much of it built up outside Britain, that exposure could run into the millions.
The couple is not leaving entirely empty handed on the tax front. Sabanathan noted that having spent more than five years outside the UK, they cleared a separate threshold that shields foreign investment gains, potentially including income from deals with Netflix and Spotify and Meghan's As Ever brand, from being clawed back under the UK's rules on temporary non-residents.
The tax wrinkle comes amid a broader family story. Harry and Meghan stepped back from royal duties six years ago and settled in California, and reports now suggest a reconciliation is underway as King Charles III deals with a cancer diagnosis. Their children are reportedly enrolled in schools in the UK, though which property the family will settle into has not been confirmed.