Financial investment firm Stocklytics, say the Royal Family has avoided normal tax rules because of the way the Queen Mother’s estate was planned and her longevity
The Duke of Sussex is poised to avoid inheritance tax on a £7million fortune.
Prince Harry was gifted the funds on his 40th birthday last month and experts have predicted he won’t pay anything in tax.
It’s an installment of his great grandmother the Queen Mother’s £19million trust fund, and experts say it will make Harry around £7million richer.
Investment firm Stocklytics, say the Royal Family has avoided normal tax rules because of the way the Queen Mother’s estate was planned and her longevity.
Financial experts from the firm said: “With Prince Harry set to receive the final instalment of the Queen Mother’s trust fund, valued at £19 million, 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 seven years of the individual’s death. However, since the Queen Mother died in 2002, this trust would no longer be subject to inheritance tax.
“If the Queen Mother had died within the 7 years a trust is subject to inheritance tax, HMRC could have been owed up to £7.47 million,” reports the Express.
Harry will receive a larger share of the generous bequest than his older brother due to the Royal Family’s financial management.
As the future monarch, Prince William stands to inherit the substantial riches of the Duchy of Cornwall, a private estate that funds the public, charitable, and personal endeavours of the King’s successor. Consequently, Prince Harry is expected to receive just over half of the £14m allocated for the siblings.
Stocklytics analysts commented: “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.
“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.”
The Mirror reported how financial expert Martin Lewis said half of his social media followers were “anxious” about the Inheritance Tax.
“This is a tax you have to pay on your “estate” – so your property, money and possessions – when you die. But you only need to pay if you are leaving more than £325,000 behind.
He said this means that, in reality, the vast majority of Brits will never pay a penny.
Martin added: “Most of you shouldn’t worry about Inheritance Tax as only one in 25 estates pay it. Only those at the higher end of the wealth scale are impacted by it, only 4% paid it over the last year, although many more – 30% to 40% of people fear it.”
