Harry Potter star Rupert Grint ordered to pay £1.8m after losing tax battle

Rupert Grint says Harry Potter was his 'childhood' in 2019

Former Harry Potter star Rupert Grint has been ordered to pay £1.8million in tax after losing a legal battle with HM Revenue and Customs (HMRC).

The actor, who played Ron Weasley in the hit film series, was originally ordered to pay the sum in 2019 after HMRC disputed one of his tax returns.

At the time, the 36-year-old’s lawyers claimed the money was correctly taxed as a capital asset. However, HMRC said it should have been taxed as income at a higher rate.

Grint’s argument was dismissed by a tax tribunal judge this month.

According to the BBC, during the 2011-12 tax year, the actor received £4.5million from a company that managed his business, and of which he was the only shareholder.

Rupert Grint starred in all the Harry Potter films (Image: Warner Bros)

It was reported that this payment was described as being for “likely residual income and bonuses” resulting from the Harry Potter films.

Grint argued he could pay capital gains tax on it at a rate of 10% rather than income tax and National Insurance at a top rate of 52%.

In the ruling, tribunal judge Harriet Morgan dismissed the appeal and said the money “derived substantially the whole of its value from the activities of Mr Grint”, which was “otherwise realised” as income.

Grint previously lost another, separate court case in 2019 that involved a £1million tax refund.

Rupert Grint has been ordered to pay £1.8m (Image: Getty)

That case referred to the 20 months up to April 5, 2010, during which the actor was said to have generated a turnover of £28million and £15million 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 would have 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 Grint had every right to change his accounting date - but said he had not actually done so.

In 2016, a tax tribunal judge agreed with HMRC and dashed the actor's hopes of a bumper rebate.