Harry could be hit with hefty tax bill unless he takes break from £11m mansion

News

Prince Harry could face a huge tax bill unless he takes a break from his £11million mansion in the US, it has been reported.

Harry, his wife Meghan and son Archie moved to Los Angeles in early May after leaving a rented mansion in Vancouver, Canada.

They were first said to be staying at a mansion owned by TV producer Tyler Perry on May 7.

This means Harry has been in the US for at least 151 days and, if he reaches 183 days there, he is liable to pay taxes.

Top LA tax lawyer David Holtz last night said: “You can safely assume that someone at the Internal Revenue Service is looking very closely at him. This is a big deal.”

Harry faces paying both US federal and Californian state taxes, which could potentially land him a big bill next month.

Another tax expert told the Mail on Sunday : “Harry’s bill could be monumental and could open up a can of worms for the Royal Family because the IRS will want to know all his sources of income.”

The expert said the income will be calculated considering not only the couple’s Netflix deal, but also any money he received from Prince Charles and trust funds.

Another accountant said: “Meghan is a US taxpayer and her situation hasn’t changed, but Harry will have to tell the IRS about every penny he has received.

“That includes paying gift tax on any monetary gifts he received from Prince Charles and he will have to show any other source of income including trust funds set up after the death of Princess Diana.”

The Duke and Duchess of Sussex, who are estimated to have a joint fortune of £20 million, live in a mansion in Montecito, California.

It comes as the former head of the Army has issued an extraordinary public plea for Prince Harry to return to the UK.

General Sir Richard Dannatt said veterans will lose out because of Harry’s decision to quit royal life and move to America with actress wife Meghan Markle.

He said he believed it was a shame the prince is no longer connected to armed forces charities that help injured or troubled veterans, including Help For Heroes and Walking with the Wounded.

General Dannatt said: “Harry and Meghan are very much involved in other things and that’s their life choice and I don’t criticise them for that.

“But it means that he is not as available, not supporting in such a high-profile f­ashion, the work of charities and the needs of veterans.

“I don’t criticise him for that, he makes his own choices, but we miss him and I hope that in a change of circumstances, that I can’t envisage, he returns to take up more traditional royal duties in this country.”

Meghan Markle and Prince Harry are thought to have told friends that they are “not ready” to return to the UK to spend Christmas with the Royal Family.

If they choose to stay away, it will be the second year in a row that they have spent Christmas away from the Queen and the rest of the royals, including the Duke and Duchess of Cambridge.