NOTHING TO DECLARE

There Could Be Big Money Behind Harry and Meghan’s Return to Great Britain

The tax timing of the Sussexes’ homecoming is—in the words of one leading tax expert—“immaculate.”

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One constituency of professionals is tracking Harry and Meghan’s blockbuster return to the United Kingdom differently from the rest of us: the accountants. Experts in the field believe the timeline of their departure and return is—from a U.K. tax perspective—perfect, if the goal was to minimize tax liabilities. As Nimesh Shah, chief executive of the London tax and advisory firm Blick Rothenberg, wrote on X: “Good to see Harry and Meghan achieve six full tax years of non-UK residency to manage the ‘temporary non-resident’ rules for capital gains tax... the timing of their move back to the U.K. is immaculate.” The U.K. has a “temporary non-residence” rule—if you leave the country and come back within five years, you never really left for tax purposes as far as “capital gains” are concerned. But if you stay out for over five years (which in practice means six complete tax years) you’re golden. Now look at the Sussex calendar: Having left just before the 2020 U.K. tax year wrapped up, they’ve now been non-resident for—surprise!—the requisite six full tax years. Say what you like about their staff management skills, somebody in Montecito seems to have a very good accountant.

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