Former Harry Potter actor Rupert Grint is facing a tax bill of more than £1.8million after losing a legal battle with HM Revenue and Customs.
Grint, who played Ron Weasley in the franchise, was originally ordered to pay the sum in 2019 after HMRC launched an investigation into his tax return from the 2011-12 tax year.
The actor had received a £4.5 million sum from a company which managed his business affairs as ‘consideration for rights, records and goodwill’ from his work, which he claimed was a ‘capital asset’ and therefore the subject of capital gains tax.
But HMRC argued that the fee should have been classed as income, and following the investigation told Grint he needed to pay an additional £1,801,060 in tax.
At a hearing in the First-Tier Tribunal, held in London in November and December 2022, lawyers for the 36-year-old actor appealed against HMRC’s decision, arguing that the right amount of tax had been paid.
But in a ruling, Tribunal Judge Harriet Morgan dismissed the appeal, finding that the sum ‘is taxable as income’.
She said that the money ‘derived substantially the whole of its value from the activities of Mr Grint’, which was ‘otherwise realised’ as income in the 2011/12 tax year.
Grint played Ron Weasley in all eight Harry Potter films from 2001 until 2011 and is calculated to have earned around £24 million from the role.
Former Harry Potter actor Rupert Grint is facing a tax bill of more than £1.8million after losing a legal battle with HM Revenue and Customs
Grint, who played Ron Weasley in the franchise (pictured with Daniel Radcliffe and Emma Watson), was originally ordered to pay the sum in 2019 after HMRC launched an investigation into his tax return from the 2011-12 tax year
Grint with the late actress Maggie Smith, who played Professor McGonagall
He previously lost a separate court battle concerning a £1 million tax refund in 2019.
That case referred to the 20-months up to April 5, 2010, in which the actor was said to have generated a turnover of £28 million and £15 million in net profits.
His accountants tried to shift eight months’ worth of his income into the 2009/10 tax year, during which the top rate of tax was 40%.
A new top rate of 50% took effect in 2010/11, so the move promised to cut the actor’s tax bill on that income by 10%.
The accountants said he had moved his accounting date from July 31 to April 5, bringing the whole 20-month period within the lower tax rate.
The tax authorities agreed that Mr Grint had every right to change his accounting date – but denied that he had actually done so.
A tax tribunal judge in 2016 agreed with HM Revenue and Customs and dashed the actor’s hopes of a bumper rebate.
Since ending his Harry Potter role, Grint has starred in numerous roles on stage and screen, including a recurring role over the last four years in Apple TV series Servant.
The actor has starred over the last four years in Apple TV series Servant
Grint (centre) with his Harry Potter co-stars Emma Watson and Daniel Radcliffe
Grint played Ron Weasley in all eight Harry Potter films from 2001 until 2011 and is calculated to have earned around £24 million from the role