Duke of Sussex’s settlement overshadowed by financial and tax complications
Prince Harry’s recent “monumental” legal victory against Rupert Murdoch's British newspaper group has been marred by a significant setback involving financial and tax complications.
The Duke of Sussex filed a lawsuit against News Group Newspapers over unlawful information gathering and reached a settlement before the trial began. The publisher agreed to pay Harry substantial damages, alongside issuing a public apology and admitting wrongdoing.
However, according to royal commentator Richard Eden of the Daily Mail, much of the settlement amount is expected to go toward legal fees, with the remaining sum potentially subject to taxation in the United States.
“As a US resident, Harry has to pay tax on his worldwide income unless it’s been taxed in Britain,” an insider explained. “And here’s the sting in the tail: legal damages are not taxed in the UK.”
The BBC has reported that the “substantial damages” awarded to Harry are estimated to be at least £10 million.
While the settlement marks a significant win in Harry’s campaign to hold the media accountable, the financial implications may dampen the overall victory, leaving the Duke to navigate these additional challenges.
