Prince Harry avoids paying tax on his $8.5M inheritance — here’s how

Prince Harry’s hefty $8.5 million inheritance will not be subject to tax deductions, investment experts have said.

The Duke of Sussex received the generous cash gift on his 40th birthday last month — thanks to arrangements made by his late great-grandmother, Queen Elizabeth, the Queen Mother.

The late Queen Elizabeth II’s mother put $90 million into a trust fund for her family and listed that Harry was to access his share of the trust when he turned 40 as one of the fund’s stipulations.

While it was originally reported that Harry would have to pay tax on his earnings, investment firm Stocklytics says the royal family has avoided normal tax rules due to how the Queen Mother planned out her estate.

“With Prince Harry set to receive the final installment of the Queen Mother’s trust fund, valued at $25 million, many Brits may be asking how much inheritance tax he’ll pay — especially as the latest judicial reviews have cost the taxpayer $650,000 each,” the firm told The Mirror.

“However, due to the way the Queen Mother’s estate was planned and how long she lived, it is likely HMRC [His Majesty’s Revenue & Customs] will not receive a penny in inheritance tax.”