Harry Potter star Rupert Grint accused of borrowing a 'Beatles clause' to avoid tax. Now he has to pay $2.3 mn

Actor Rupert Grint, known for his role as Ron Weasley in the "Harry Potter" films, will reportedly have to pay $2.3 million in back taxes after losing a tax dispute with the UK government.

Grint, 36, starred in all eight Harry Potter films between 2001 and 2011 as the boy wizard’s best friend, and is calculated to have earned around 24 million pounds from the role.


The UK's tax agency, His Majesty's Revenue and Customs (HMRC), argued that Grint incorrectly classified earnings from the "Harry Potter" franchise as "capital assets" instead of "income", according to a report of USA Today.

This classification allowed him to pay a lower tax rate. The dispute centered on approximately $5.7 million Grint received during the 2011-2012 tax year, believed to be from residuals – money earned from sources like streaming and DVD sales after a film's initial release. By classifying this money as an "asset," Grint paid a 10% capital gains tax instead of income and national insurance tax, which can be as high as 52%.

HMRC initially pursued the case in 2019. Grint's lawyers appealed the initial ruling, but a judge rejected the appeal this week. The judge ruled the funds “derived substantially the whole of its value from the activities of Mr. Grint” and “is taxable as income.”

This isn't Grint's first tax issue. He lost a separate tax case in 2019 involving a $1.2 million tax return. Grint also recently starred in the M. Night Shyamalan horror series "Servant."

The judge's decision referenced the "Beatles clause," indicating Grint used a similar tax strategy as the Beatles attempted in the 1960s.

Many other celebrities including Lil Wayne, Willie Nelson and Dionne Warwick have also embroiled in tax issues earlier.