Meghan Markle faces tricky ‘financial catch’ when she marries Prince Harry – and it could cost her a lot of money
Meghan Markle may be about to join a family worth £383 million, but she might have to get saving
Come 19 May, Meghan Markle will be part of a family which commands a net worth of over £60 billion.
Where the rest of us have bits of old change behind the sofa, the Royal family and have land and investments.
Where you have an overdraft, they get taxpayer funding through a “sovereign grant” which is issued by the treasury.
Normally, marrying into the royals is something of a cash cow, but in Meghan’s case, it could actually end up costing her a LOT of money.
According to the BBC , Meghan is currently living in the UK on a family visa. One of the conditions of this visa is she will have to marry within six months of obtaining it.
So far, so good.
The visa will need to be renewed every two-and-a-half years, and Meghan will only be able to apply for permanent residency when she’s lived in the UK for five years.
What this means, financially, is she’ll be paying taxes to the IRS on any income she makes — regardless of where in the world she earns it.
“US citizens, green card holders, and permanent residents are required to file tax returns with the IRS every year no matter where they reside,” Avani Ramnani, director of financial planning and wealth management at Francis Financial , told Business Insider .
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“This is a special tax return called the expatriate tax return,” she said. “US citizens, including Meghan Markle , get taxed on international income earned outside the US.”
While Meghan won’t be earning money in the traditional sense, Harry, William and Kate all receive an allowance from various estates which is taxable.
So, if Meghan profited from the same sort of allowances, she’d be paying tax on them in the UK and the US.
There are various (potential) exemptions to this rule, and she could be eligible for receiving a credit for living abroad expenses.
However this does not include “expenses that are lavish or extravagant under the circumstances.”
Bakes beans on toast then, Meghan?
Source: DAILYSTAR CO UK
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