Harry Potter star must pay huge tax bill after losing unique legal battle
Famous actor **Rupert Grint** faces a £1.8 million tax payment after losing appeal against tax authority. The case involves special tax rules dating back to Beatles-era arrangements
Rupert Grint faces a £1.8-million tax bill after losing his appeal against HM Revenue and Customs in a high-stakes legal battle. The tax authority won the case using a special rule linked to income from TV shows and DVD sales
Around 13 years ago Grint created Clay 10 company (following his fathers advice) to manage his earnings from future media sales. This move wouldʼve cut his tax payment from £2.2-million to £450‚000; however the plan didnt work out as expected
The case centered on the so-called “Beatles clause“ - a rule that came from the legendary bands own tax situation back in the 60s. The Beatles tried to pay less tax by:
- Making their own company
- Selling music rights to it
- Paying 30% capital gains instead of 95% income tax
Judge Harriet Morgan stated: the capital sum is taxable as income. This ruling follows Grints previous £1-million tax refund rejection about 8 years ago. During a hearing five years back‚ the actor (who started in Harry Potter when he was just 12) admitted he wasnt very involved in his finances - leaving everything to his dad and accountant
I have quite limited knowledge of these matters
The star - known for playing Ron Weasley - earned roughly £24-million from the wizard franchise; but now must deal with this new financial setback
