Revenue may push princes into debt

Prince Charles walked away from a scheme last week that could have saved #7m in tax on the estate of his former wife Diana, Princess of Wales, because the Royal family feared that the scheme would arouse public anger.

The scheme, called a ‘Barder application’, would have allowed the prince to re-route funds from Diana’s estate into a trust, thus avoiding 40% inheritance tax.

But the decision could force the main beneficiaries of Diana’s estate, princes William and Harry, into debt if the Revenue also decides to place a figure on the sale of intellectual property rights connected with Diana’s name.

Boodle Hatfield, London-based solicitors advising former prime minister John Major, who has been appointed guardian ad litem for the duration of the legal action, said it was possible that the Revenue could place a value on the commercial activities related to her estate.

‘This is the main issue exercising us at the moment,’ a spokesman said.

The princess left in the region of #21m in her estate.