Summary

Prince Harry and Meghan Markle have decided to return to the United Kingdom after living in California since stepping back as senior working royals in 2020. The Duke and Duchess of Sussex are leaving their Montecito estate for a private home outside London, a move that has surprised observers and reignited discussions about their strained relationship with the royal family. Tax specialists warn that by returning after only six years abroad, the couple forgoes significant tax benefits – including up to four years of Foreign Income and Gains relief and inheritance‑tax protections that would have applied had they waited a full decade. However, their six‑year stay also places them outside the UK’s temporary non‑resident capital gains tax rule, shielding foreign earnings from UK tax.

The relocation coincides with King Charles III’s ongoing cancer treatment and a recent family meeting at the monarch’s Gloucestershire residence, the first time he has seen his grandchildren in four years. While neither Buckingham Palace nor the Sussexes have commented publicly, sources suggest the couple wishes to raise Archie and Lilibet in Harry’s homeland and be closer to royal cousins. Their children have already been enrolled in British schools, and the Sussexes plan to retain their Montecito property as a U.S. base. Financially, they continue to profit from Netflix and Spotify ventures and Meghan’s As Ever brand, underscoring that the move is as much about personal and familial considerations as it is about finance.