( Source : BBC) Rupert Grint, best known for playing Ron Weasley in the Harry Potter films, has been ordered to pay more than £1.8 million in taxes after losing an appeal against HM Revenue and Customs (HMRC). The case centers around a tax dispute over Grint’s income from future TV and DVD sales of his work, commonly known as “residuals.”
In 2011, Grint set up a company, Clay 10, to sell the rights to his residuals as capital, aiming to reduce his tax liability. This move was intended to lower his tax burden from £2.2 million to £450,000. However, HMRC argued that the earnings should be taxed as income, not capital, invoking what is known as the “Beatles clause.” This clause refers to a tax loophole the band attempted to use in the 1960s, which was ultimately ruled inapplicable by the court.
Judge Harriet Morgan sided with HMRC, stating that the arrangement was a form of tax avoidance and that Grint’s £4.5 million in earnings from future sales should be taxed as income. Grint had previously lost an appeal over a £1 million tax refund in 2016 and admitted in court that his financial knowledge was “quite limited,” relying on his father and accountant to manage his tax affairs.
Grint’s representatives have not yet commented on the ruling.
