30 November 2024
Rupert Grint has been ordered to pay another £1.8 million in tax.
Rupert Grint has been ordered to pay another £1.8 million in tax
The ‘Harry Potter’ actor, 36, is said to be worth £40 million after his appearances in the wizard movie franchise, but it has now emerged there has been another bank balance-busting develpoment in his long-running legal battle with HMRC over his tax return from the 2011-’12 financial year.
Best known for portraying Ron Weasley in the film adaptations of J K Rowling’s ‘Potter’ books, the actor previously lost his fight with the taxman in 2019 and was ordered to pay the huge sum following a probe into his return from 13 years ago.
It came after the star was given £4.5million from a company which managed his business affairs as “consideration for rights, records and goodwill” from his work.
Rupert said it was a “capital asset” and should be the subject of capital gains tax.
But HMRC said the cash should have been registered as income and their investigation concluded the actor needed to pay another £1,801,060 in tax.
The Daily Mail has reported the actor’s lawyers appealed against HMRC’s decision at a hearing in London in November and December 2022.
But the newspaper said a tribunal ruling saw Judge Harriet Morgan dismiss the appeal and find the sum was taxable as income.
In the 20 months up to 5 April 2010, Rupert was said to have built up a turnover of £28 million and £15 million in profits.
Accountants tried to move eight months of his income from a 50 per cent top tax rate in 2010-’11 to the 40 per cent rate in 2009-’10 as they wanted to bring his accounts date back from July 31 to April 5.
The taxman agreed but denied Rupert had actually gone ahead with the plan and a London tax tribunal ruled he would not get the rebate.
Judge Barbara Mosedale ruled the conditions necessary to make a valid accounting date change had not been met.
She said: “It was no part of HMRC’s case that Mr Grint was involved in tax avoidance.
“HMRC accepted that he had the right to change his accounting date.
“The dispute solely concerned whether he had done so within the meaning of the legislation.”
Rupert starred in the first ‘Harry Potter’ film in 2001 and is calculated to have earned around £24 million from playing Ron Weasley alone.