Rupert Grint has been ordered to pay £1.8 million in taxes following a legal dispute with HM Revenue and Customs (HMRC). Grint, renowned for his role as Ron Weasley in the beloved film series, received this tax bill in 2019 after HMRC challenged one of his tax returns. The dispute arose over £4.5 million in income Grint earned during the 2011-12 tax year, with HMRC asserting it should be categorized as regular income instead of a capital asset.
At 36 years old, Grint, who was the sole shareholder of a company managing his business interests, contended that the income stemmed from residual payments and bonuses related to the Potter films. His legal team argued that he should have only been liable for capital gains tax at a lower rate of 10%. However, HMRC maintained that the money should be taxed as income, incurring a much steeper rate of 52%. Ultimately, Judge Harriet Morgan ruled in favor of HMRC, dismissing Grint’s appeal and asserting that the funds “derived substantially the whole of its value from the activities of Mr. Grint,” characterizing it as income.
This isn’t the first instance of Grint’s tax matters leading to court proceedings. In 2016, he lost a separate case concerning a £1 million tax refund. A tax tribunal judge dismissed his appeal against HMRC's decision blocking his attempt to alter accounting dates in order to minimize tax liability. Grint had reportedly earned about £24 million from his role in the Harry Potter franchise.
Judge Barbara Mosedale described how Grint followed recommendations from tax advisers Clay & Associates, aiming to change his accounting date so that income from 20 months would be taxed in 2009-10, thus shifting eight months of earnings from the following tax year when the tax rate increased from 40% to 50%. If successful, it could have saved him approximately £1 million. Grint has appeared in all eight Harry Potter films from 2001 to 2011 and continues to work in film, TV, and theatre. He has been approached for comment.
