Harry and Meghan’s homecoming comes with a multimillion-dollar tax catch—waiting four years could have shielded their $60 million fortune

Harry and Meghan, the Duke and Duchess of Sussex, are returning to the U.K. after living in the U.S. for the past six years.

They’re moving from their Montecito mansion to a private residence outside of London, but the timing of their surprise homecoming could mean they miss out on tax breaks.

Experts say that they’re leaving potential savings on the table, which could be worth millions.

“Whilst their return is welcome news, staying away a bit longer would have given them a much better tax result,” Dhana Sabanathan, leading partner in the tax, trusts and succession team at national law firm Michelmores, tells Fortune.

Under certain U.K. tax rules, the couple forgoes major benefits by returning home.

Because Harry spent only six years away, he missed two key tax advantages tied to a 10-year non-residence period: four years of Foreign Income and Gains (FIG) relief, and the inheritance-tax advantages available to someone who has broken their long-term U.K. residency.

For example, if their U.S.-based investments grew in value and they sold them after returning to England, they could have sold those investments and brought the money into the U.K. without owing U.K. tax on those qualifying foreign gains, under the FIG regime.

Now, his qualifying foreign income or investment gains could be subject to U.K. tax.

And because inheritance tax can be as high as 40%, that could mean millions of dollars of his overseas assets could be exposed, as estimates put Harry and Meghan’s collective fortune at $60 million.

If they had waited 10 years before returning home, Harry’s non-U.K. assets—take his Montecito home and U.S. investments, for example—could potentially have stayed outside inheritance tax for years after his move.

“If they had remained non-UK tax resident for 10 consecutive tax years before returning, they could have enjoyed relief on their non-UK income and gains for the first four years of their return,” Sabanathan explains.

“Staying away for 10 years could have also enabled Harry to protect his non-UK assets from inheritance tax.” There are also no public reports of Harry obtaining U.S. citizenship, so he is not subject to the country’s taxation upon leaving their Montecito home for the U.K.

California-born Meghan will still have to deal with her home country’s tax affairs while living across the pond.

Additionally, since stepping back in 2020, Harry hasn’t collected the public money working royals receive for official duties.