Meghan Markle could receive an allowance from the royal family… but there is a catch
ELEGANT balls, frequent travel, stylish clothes - being a royal certainly has its perks.
And it has been revealed that Meghan Markle could receive a financial allowance too after she ties the knot with Prince Harry later this year.
Prince Harry and William receive a £324,000-a-year investment profit from their late mum's £21.5million estate.
They, along with Kate Middleton, shared a £3.5million annual allowance for their travel and wardrobe expenses.
It is unclear what Meghan will receive exactly, but there could be a downside if she does.
The American star is said to be living in the UK on a family visa, and will have to marry within half a year of obtaining this to maintain it.
She won’t be granted full permanent residency until she has lived in the UK for five years, but will still pay tax to the International Revenue Service (IRS) on any income she makes during this time.
By contrast, if Prince Harry was to move to America to live with Meghan, he wouldn’t be expected to file taxes in Britain.
The system of taxing US citizens abroad is an unusual one. It was introduced during the Civil War as part of the Revenue Act of 1862 to punish men who fled the country to avoid joining the military.
Avani Ramnani, director of financial planning and wealth management at Francis Financial said: "US citizens, green card holders, and permanent residents are required to file tax returns with the IRS every year no matter where they reside.
"This is a special tax return called the expatriate tax return. US citizens, including Meghan Markle, get taxed on international income earned outside the US."
Earnings could include a royal allowance, however there is a way she could waiver US taxes if she qualifies for foreign earned income exclusion.
This excludes taxing on the first $104,100 (£74,993) made in the residing country, but a greater sum could cause a headache for the royal family.
If she has more than £221,529 ($300,000) worth of assets in any given tax year, she’ll be expected to file a Form 8938 document revealing the detail of these assets – which may include foreign trusts and details of the royal family’s estate that was previously undisclosed.
The Form 8938 is a pretty likely scenario given Meghan made approximately £36,920 for each episode of Suits and has an estimated net worth of around £3.7million ($5million), according to celebritynetworth.com.
Royal expert Marlene Koenig told The Sun: “Prince Harry receives no public funding.
"But it is possible there may be other family trusts that he receives money from – we don’t know officially if the Queen has set up trusts for her grandchildren – it is possible.”
David McClure, the author of the book , told the that British royals' finances have long been "impenetrable" to outsiders.
He explained: "I’ve been truffling in the royal coffers for seven or eight years," adding that no one really knows how wealthy the royals are.
"I suspect the queen doesn’t know," he added.
A spokesperson from Kensington Palace told the Sun Online: "We have previously stated that it is Ms Markle's intention to become a UK citizen, and she will comply with any regulations required."
Last month we reported why Kate Middleton WON’T be a bridesmaid at Prince Harry and Meghan Markle’s wedding.
We also revealed the things Meghan will be banned from doing when she marries Prince Harry.
And yesterday we brought you the UK's number one Meghan Markle lookalike.