Rupert Grint, best known for playing Ron Weasley in the Harry Potter series, has been ordered to pay £1.8 million ($2.3 million) in taxes to the UK’s HMRC (His Majesty’s Revenue and Customs). The tax ruling is based on Grint’s earnings from Harry Potter relics, which were until recently classified as income rather than capital assets.
The decision comes after a legal dispute that began in 2019. According to Entertainment Weekly, Grint’s representatives have not yet commented on the decision.
HMRC claimed that Grint had used tax tactics similar to those attempted by the Beatles in the 1960s. The so-called Beatles clause refers to a loophole where earnings are reclassified as capital gains to reduce tax liabilities.
Grint founded a company called Clay 10 Ltd. in 2011, sold his remaining rights from Harry Potter to the company and reported the earnings as capital assets.
Clay 10 Ltd., which reportedly had more than 27 million pounds ($34 million) of equity as of March 2023, was at the center of the case. However, Judge Harriet Morgan ruled that Grint’s residuals, primarily from DVD and TV sales of the Harry Potter films, are taxable income, not capital gains.
During the case, Grint argued that he was not heavily involved in managing his finances. He trusted his father and professional accountants to handle his financial affairs.
Judge Morgan acknowledged this in his decision, saying that Grint “put his trust in his father and the accountant.” Despite this, the court upheld HMRC’s assessment of the taxes owed.
This isn’t the first time Grint’s Harry Potter earnings have come under scrutiny. In 2019, HMRC initially flagged the actor for misclassifying £4.5 million in residuals as capital assets. Grint’s legal team appealed, but the latest ruling has left him with a significant tax bill.
According to the Associated Press, Grint, who made his screen debut in 2001’s Harry Potter and the Sorcerer’s Stone, earned approximately £27 million during his time in the franchise. While co-stars Daniel Radcliffe and Emma Watson have pursued high-profile projects, Grint has kept a low profile.
Most recently, he has appeared in M. Night Shyamalan’s Knock at the Cabin, the Apple TV+ series Servant, and Guillermo del Toro’s Cabinet of Curiosities. Despite his quiet career, Grint remains a household name due to the enduring popularity of the Harry Potter franchise.
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