Prince Harry faces prospect of hefty tax bill in California, expert warns

The Duke of Sussex faces a significant financial hit from the “zealous” US tax authorities, a royal financial expert has said, warning that the couple had not "thought through" the high cost of Californian life. The Duke and Duchess spent more than $14.6m on an impressive estate in Montecito, California, where they plan to live long-term and raise their son, Archie, in relative normality. But once Prince Harry has spent 183 days in the US over a three-year period, he will be considered a resident for tax purposes and liable for tax. David McClure, author of forthcoming book The Queen's True Worth, said: “California is a high tax state and he’s likely to get a hit. “I don’t think Harry and Meghan have totally thought through the financial consequences of their exit from the Royal Family. “The more their expenditure rises in California, the greater the pressure to generate their own income in more downmarket, commercial deals. That’s always been the worry of the palace.” Mr McClure said that the Duke would have to hand over much more detail about his personal finances and earnings than he would ever have had to do in the UK. “The US taxman is much more zealous than his UK counterpart and for that reason, Harry will have to watch his step on the income he generates,” he added.

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