Meghan MarkleandPrince Harryspent the last 10 days in southern Africa with their sonArchie Harrison Mountbatten-Windsor. The tour took place in South Africa, Botswana, Angola and Malawi with notable figures such as Archbishop Desmond Tutu and the widow of Nelson Mandela Graca Machel meeting with the couple. But apparently, the happy union between Harry and Meghan has turned out to be somewhat of a financial headache for theRoyal Family. So why is this the case?
Meghan Markle and Prince Harry first started secretly dating in 2016 when Meghan was an actress on the hit US legal drama Suits.
The former actress,, was revealed as the prince’s girlfriend on October 31, 2016, celebrating the news with a photograph of two bananas spooning on her Instagram page.
Since that time, the Sussex couple garnered much attention around the world, with their fans enthusiastically seeking any sign of how besotted the couple are for one another.
However, it appears that their happiness may have come at a costly price to Harry and the Royal Family.
Meghan Markle blow: How are Meghan and Harry causing the Royal Family financial stress?(Image: GETTY)
The Duchess of Sussex born in Los Angeles, California, but moved to the UK when she and Harry got engaged in November 2017.
Since that time, she has thrown herself into the life of a British royal, but she has not yet become a British citizen.
Before Harry and Meghan married, the Prince’s communication’s secretary, Jason Knauf, said Meghan would be “compliant with immigration requirements at all times ”.
He added:“ I can also say she intends to become a UK citizen and will go through the process of that, which some of you may know takes a number of years. ”
Meghan Markle blow: Meghhan was born in Los Angeles in Ca lifornia(Image: GETTY)
So this means Meghan is still an American citizen and , therefore, is required to pay tax in the US for any income earned or allowances she receives.
This taxable incomes includes items such as gifts, homes, earnings from her acting career, and even her clothes.
But that is not all – as Harry is married to Meghan, the US tax office could also attempt to request taxation from his income as well.
This could mean the £ 10 million and £ 7milllion inheritance amounts he was awarded from his mother,Princess Diana, and the Queen mother, on which he already pays annual income tax on in the UK, could also be subject to American taxation.
Meghan Markle blow: Prince Harry’s inheritance of around £ 17 million could be at risk(Image: GETTY)
Any income attributed to baby Archie Harrison Mountbatten-Windsor could also be taxed.
Given the 35 – year-old Prince also receives money from his fatherPrince Charlesand grandmother theQueen, they may also be dragged into this *** nightmare.
Meghan is obliged to file a US tax return and to report any foreign accounts, assets more than $ 200, 000 (£ 162, 458) and gifts valued more than $ 15, 797 (£ 12, 831. 75) “regardless of whether it is actually in your possession,” according to the IRS.
The Royal Family have reportedly hired US tax experts to help them navigate the Royal Family’s involvement with the US tax system.
Meghan Markle blow: The Royal Family are reportedly speaking to US tax experts to get advice(Image: GETTY)
The only way for Meghan to avoid paying US taxes would be to renounce her US citizenship once she becomes a British citizen.
However, even if she does so, baby Archie will still be liable for US taxes until the age of 18.
According to the US Department of State, in Archie’s case he will acquire US citizenship because he was born in wedlock abroad to an American citizen who has lived in the US for a period of five years, at least two of which were after the age of 14.
That means throughout the child’s life, he will also have his assets and income exposed to US taxes, including any “unearned income” over $ 2, 100 (£ 1, 706) until he is 18 and has a chance to renounce his US citizenship if he wants to.
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