An inheritance from Diana, Princess of Wales, will see Prince Harry receive £10 million on his 30th birthday this year, which he celebrates on 15th September. The money is subject to a £4 million tax bill (at 40%) but this could be reduced to £3.6 million if Prince Harry chooses to give some of the money to charity. When Prince William received the same inheritance two years ago, he paid the same 40% estate tax.
Prince Harry, who was recently in Chile after spending time in Brazil, is currently earning a £38,847 salary for his role as a captain in the Army. When Diana, Princess of Wales died nearly seventeen years ago, she left nearly £13 million in her will, which also incorporated the money from her £17 million divorce settlement.
The settlement included shares, jewellery, cash and personal items from Kensington Palace, which was her home. Under the stipulations of the will, the money was to be halved between William and Harry when they reached the age of 25, however executors of the late Princess of Wales changed the details so that the Princes would receive the money when they were 30.
Prince Harry was just 12 when his mother was killed in a car crash in Paris in August 1997; Prince William was 15.
The value of the legacy is over the inheritance tax threshold of £325,000, which includes any assets held in trust or gifts made within seven years of death, and therefore should be reduced by almost half according to the UK’s tax authority.
A Royal source is quoted as saying, “There is no way Harry would dodge the tax, there are few similarities between the average person and William and Harry but when it comes to tax, they also have to pay their way”.