How Prince Harry and Meghan might become ‘financially independent’

What is the Sovereign Grant?

In exchange for this public support, the Queen surrenders the revenue from the Crown Estate, a collection of UK properties and farms that generate hundreds of millions of pounds a year, to the government.

The Sovereign Grant is calculated on a formula based on the size of that revenue. In the 2018-19 financial year, it was £49.3 million ($64.3 million). The royal accounts do not say exactly how much is transferred to the Duke and Duchess of Sussex, although they do state that the couple received about £100,000 in travel costs.

The Sussexes say the grant covers just 5% of their costs and is specifically used for their official office expense. They did not say how much they receive from the Sovereign Grant — but royal accounts show that they received just under $104,000 in the 2018/19 financial year for travel expenses. Other costs are not broken down in the accounts, so it is not possible to say how much they receive in taxpayers’ funding.

The duke and duchess said the new approach will allow them to “continue to carry out their duties” for the Queen, while having “the future financial autonomy to work externally.”

Under the current structure and financing arrangements the couple are not allowed to earn any income in any form.

“Public funding has never been used, nor would it ever be used for private expenditure by The Duke and Duchess of Sussex, who also do not receive any tax privileges,” the couple said. That statement, however, omits to point out that the Duchy of Cornwall — the source of most of their income — itself receives significant tax exemptions because of the way it is set up.

The duchy was established by King Edward III in 1337 in a charter that ruled that each future Duke of Cornwall would be the monarch’s eldest surviving son and heir to the UK throne, currently Prince Charles.

How might they fund their lifestyle?

The couple are unlikely to struggle when it comes to their private income — whether it might be through sponsorship, speaking tours or the like.

Media reports have suggested that Meghan was independently worth around $5 million prior to marrying Harry.

She rose to fame as Rachel Zane in the US legal drama Suits, but her popularity also grew through her hugely popular Instagram account and her successful lifestyle blog — The Tig — both of which have since been closed.

In her first interview alongside Prince Harry in November 2017, Meghan said she intended to quit acting after their marriage, calling the change a “new chapter.”

But royal biographer Penny Junor told CNN that the pair will need a “considerable income to support their current lifestyle.”

She added that if they plan to support the Queen and other charitable patronages, “they won’t have much time for other work.”

Junor said: “I suppose Meghan could go back to acting and Harry could fly helicopters, but to be honest I don’t think they have thought this thing through.”

Besides his income from the Duchy of Cornwall, Harry inherited several million from the Queen Mother, and a few million more was left to him in trust by his late mother, Princess Diana.

His personal wealth is estimated to be around $40 million.

The cost of personal travel, which has landed the pair in hot water in recent months, is privately funded and will continue to be so, the couple said.

Any official visits that they may do in future will continue to be funded by the Sovereign Grant, plus contributions from the host country, the statement added.

The cost of security will continue to be the responsibility of the British government as the couple are “classified as internationally protected people which mandates this level of security.”

No breakdown of the costs has been revealed, with the UK government citing security reasons.