The Daily Mail’s Richard Eden claimed the majority of Harry’s sum is thought to be reserved for his lawyer’s fees and whatever remains will have to be taxed in the US.

A source told the outlet: “As a US resident, Harry has to pay tax on his worldwide income unless it’s been taxed in Britain.

“And here’s the sting in the tail: legal damages are not taxed in the UK.’

On Wednesday, NGN offered its “full and unequivocal apology” to the duke for the “serious intrusion” by The Sun between 1996 and 2011 and for the “phone hacking, surveillance and misuse of private information” by journalists and private investigators instructed by them at the News Of The World.