The Prince of Wales has been paying millions of pounds extra to fund Harry and Meghan’s lifestyle from his private income — on top of the money he gives them from the profits of the Duchy of Cornwall, the Standard has learned.
At one stage he was paying the Sussexes, who say they want to be financially independent in their new role once they step down as “senior royals”, more than Prince William and his family. That figure is now around the same.
Inside sources say Charles paid out “hundreds of thousands of pounds” in private income too to help furnish Harry and Meghan’s Windsor home, Frogmore Cottage, in addition to the £2.4 million of taxpayers’ money spent on renovations.
“On top of that he paid out a small fortune for their wedding,” a source said.
Another source told the Standard: “There is a great deal of hurt given that the Prince of Wales has gone out of his way to help his son who he loves dearly and embrace his daughter-in-law into the family.
“The figures quoted on the Sussex website are wrong. It does not take into account security for one thing and much of the travel. Also talk of what the Prince of Wales only pays towards both his sons from the profits of the Duchy is simply not true. He has paid out considerable sums from his private investments and money too. These are not small sums. It should not be a surprise that he is upset by all this given the truth about how he has supported his son.”
Questions have been raised over how the Duke and Duchess of Sussex will achieve financial independence in the wake of their announcement that they plan to step back as frontline royals.
In a statement shared on their official Instagram page, they said that, as they transition away from their role as “senior” royals, they plan to “work to become financially independent, while continuing to fully support Her Majesty The Queen”.
With no precedent of a working royal stepping back in quite this way, it remains unclear how the couple’s plan will work. It is the norm that senior royals are prohibited from earning any income in any form.
But there are current members of the British royal family who hold titles but earn incomes, including Princesses Beatrice and Eugenie.
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Royal aides and government officials have created a range of scenarios setting out the “stark implications” faced by the Duke and Duchess, including a major tax trap.
Sources have described today’s royal summit at Sandringham as a “reality check” for the couple. Harry will be told that he could face a potential “double tax” on any commercial income if he and Meghan decide to resign from their royal duties and relocate abroad.
The couple could also face an enormous bill for Frogmore Cottage.
Canada requires residents, or anyone who spends 183 days or more in the country, and some property owners to pay income tax on their global earnings. Similar rules apply in the UK, but the limit is just 90 days.
This means Harry may give up his UK residency or limit his time in Canada, or risk being double-taxed on any commercial income.
Meghan already has to pay tax in the US on any local earnings no matter where she lives.