Former Harry Potter actor Rupert Grint to pay £1.8m after losing a tax battle

Former Harry Potter actor Rupert Grint to pay £1.8m after losing a tax battle

Rupert Grint, known for his role in the Harry Potter series, has been mandated to pay £1.8 million in taxes following a legal dispute with HM Revenue & Customs.

Grint, known for portraying Ron Weasley in the film series, was initially instructed to pay the amount in 2019 following an HMRC investigation that challenged one of his tax returns.

Legal representatives for the 36-year-old have filed an appeal, contending that the funds he received from a company were appropriately taxed as a capital asset. However, HMRC maintains that these funds should have been classified as income and subjected to a higher tax rate.

A tax tribunal judge has dismissed Grint’s argument.

In the tax year spanning 2011 to 2012, Grint was reported to have received £4.5 million from a company that oversaw his business operations, of which he held sole ownership as the only shareholder.

The payment has been characterised as compensation for what is believed to be residual income and bonuses from the Harry Potter films.

He contended that he could be subject to capital gains tax at a rate of 10%, as opposed to the higher income tax and national insurance rate of 52%.

In a recent ruling, tribunal judge Harriet Morgan rejected Grint’s appeal, stating that the funds “derived substantially the whole of its value from the activities of Mr Grint,” which were “otherwise realised” as income.

In 2019, he faced a separate legal setback, losing a court case concerning a £1 million tax refund.

Grint featured prominently in all eight Harry Potter film series instalments from 2001 to 2011.

Since then, he has appeared in the films Into the White and Knock at the Cabin, on television and in theatrical productions.

He has taken on a leading role in the Apple TV series Servant for four years.

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