Non-resident individuals are generally only liable to UK income tax on UK source income and on CGT on disposals of UK land (or companies holding UK land).
However, the UK has anti-avoidance rules broadly stating that if an individual leaves the UK for a period of fewer than five tax years, and while non-resident receives income or gains on which they pay no UK tax, that tax may be clawed back when they return.
Harry and Meghan should be aware therefore that a short secondment to the US would not be enough if they want to avoid these rules.
IHT
Matters become more complex with IHT due to the question of whether Harry and Meghan are still UK domiciled (or deemed domiciled) now that they have left the UK.
Domicile status is based on an individual’s intentions, but this is very difficult for the individual or HMRC to definitively prove one way or the other.
Where an individual might claim to be non-UK domiciled (because for example they have ceased to be UK resident), the UK authorities have given themselves the tools to retain individuals inside the UK tax net for a period of time through labelling individuals as deemed UK domicile.
How the domicile and deemed domicile rules apply to Harry and Meghan differ in a few important ways.
Meghan
Having returned to the US, Meghan might argue that she does not consider the UK her permanent home. Of course she may even argue she never intended to remain permanently in the UK (and thus she was never UK domiciled), although others might counter that making the UK one’s permanent home should be in the reasonable contemplation of anyone marrying a prince seventh in line to the throne.
