Rupert Grint ordered to pay £1.8m in taxes after losing legal dispute

Rupert Grint, known for his role in Harry Potter, has been instructed to pay £1.8 million in taxes following a legal disagreement with HM Revenue and Customs (HMRC).

Grint, who is famous for his role as Ron Weasley in the movie series, was instructed to pay that amount in 2019 after HM Revenue and Customs raised concerns about one of his tax returns.

HMRC challenged the £4.5 million he earned in the 2011-12 tax year, arguing that it should have been classified as regular income instead of a capital asset for tax purposes.

The 36-year-old actor, who was the only owner of a company that handled his business interests, stated that the payment was connected to earnings and bonuses from the Harry Potter movies.

Grint’s attorneys contended that he should only be liable for capital gains tax, which is set at 10%. On the other hand, HMRC maintained that the funds should be classified as income, which would be taxed at a significantly higher rate of 52%.

Judge Harriet Morgan sided with HMRC, rejecting Grint’s appeal. She stated that the money primarily gained its value from Mr. Grint's actions, and that it was essentially recognized as income.

This isn't the first instance of the actor's tax issues being taken to court. Grint also faced a different legal battle in 2016 regarding a £1 million tax refund, which he ultimately lost.

A tax tribunal judge turned down the actor's appeal challenging an HMRC decision that prevented him from changing his accounting dates to avoid the higher 50% tax rate. It was estimated that he made around £24 million from the Harry Potter series.

Judge Barbara Mosedale explained that Grint had taken the recommendations of his tax consultants, Clay & Associates, to adjust his accounting period. As a result, he would be taxed on 20 months' worth of income during the 2009-10 fiscal year.

The judge explained that Grint intended to shift the responsibility for payments related to eight months of income that should have been reported in the 2010-11 tax year. This was the same year when the highest tax rate increased from 40% to 50%.

Mosedale mentioned that if the proposed date change had gone through, it would have resulted in a 10% reduction in earnings, which amounts to roughly £1 million, based on estimates from Grint's financial advisors.

Grint starred in all eight Harry Potter movies from 2001 to 2011. Since then, he has been in the films Into the White and Knock at the Cabin, and has also taken on roles in television and theater.

Grint has been contacted for a statement.