Prince Harry will not receive the full payout from his court settlement with the publisher of The Sun due to US tax laws.
The Duke of Sussex recently reached a settlement in his legal battle with News Group Newspapers (NGN), which included a public apology for allegations of unlawful information gathering and a substantial financial compensation.
Harry accused NGN of targeting him with journalists and private investigators, with the publisher also being responsible for News of the World, which is now defunct.
While the “substantial damages” were initially estimated to be around £10 million each, US tax laws mean that Harry won’t be able to keep the entire amount, as reported by the BBC.
The trial, which also involved former Labour deputy leader Lord Tom Watson, was expected to last up to 10 weeks. However, on Wednesday morning, Harry’s barrister, David Sherborne, announced that both parties had reached an agreement, and NGN had issued an apology and agreed to pay significant damages.
According to The Daily Mail, the majority of Harry’s settlement will likely go toward covering legal fees, and the remaining sum will be subject to US tax regulations.
An insider explained: “As a US resident, Harry is required to pay taxes on his worldwide income unless it’s been taxed in the UK. And here’s the catch: legal damages are not taxed in the UK.”
On Wednesday, NGN issued a “full and unequivocal apology” to Harry for the “serious intrusion” by The Sun between 1996 and 2011, acknowledging the phone hacking, surveillance, and misuse of private information by journalists and private investigators working for News of the World.
