Not many people realize that when they get married or divorced until after they are married or divorced that there is a possible tax? Looking earlier than that is getting engaged taxable?
A) Yes, Prince Harry proposing to Meghan Markle was taxable
B) No, you are crazy. Love is not taxable
My bet is on B, but I think the real answer is that it depends if the engagement happened in Canada. If it did, there is no gift tax. If the engagement happened in the USA, there could be tax because Meghan Markle is a US citizen and bound by US gift tax.
The answer is that, as far as we know, the engagement happened in the U.K. In the U.K., there is a gift tax. However, it is tied into inheritance tax. That makes the analysis of whether the gift was taxable a bit of a challenge. My understanding is that we need to wait 7 years and see if Harry dies. That would retroactively trigger gift tax. If you are a U.K. Gift tax expert, please let us know with an answer, thanks.