Tolkien’s estate agrees to pay £ 7million to tax authorities after decade-long feud over Lord of the Rings trilogy loot

  • Tolkien’s Estate agreed to pay £ 7million to HM Revenue & Customs
  • Comes after a decade-long feud over the booty of Hollywood adaptations of novels
  • Litigation supposed to involve an amicable settlement in 2008 with the new Line Cinema










Frodo Baggins may have escaped the all-seeing eye of Sauron in JRR Tolkien’s The Lord of the Rings trilogy, but the writer’s descendants have not been able to escape the attention of the IRS.

After a decade-long feud over the spoils of Hollywood adaptations of the novelist’s classics, Tolkien’s estate has agreed to pay HM Revenue & Customs more than £ 7million.

The dispute would involve an out-of-court settlement in 2008 with New Line Cinema, the producers of The Lord of the Rings and The Hobbit film trilogies.

Frodo Baggins may have escaped the all-seeing eye of Sauron in JRR Tolkien’s Lord of the Rings trilogy (pictured), but the writer’s descendants couldn’t escape the attention of the IRS

The estate’s six administrators include Tolkien’s only surviving child, Priscilla, and her grandchildren Simon, Michael and Baillie.

Last night, a spokesperson for the estate said: “There was a difference of opinion between HMRC and the estate on the correct tax treatment of a particular receipt and the estate was advised by a top tax advisor. plan in this regard.

“The HMRC has maintained its position on this issue – although it delayed for several years in reaching its final conclusions – in which case the estate decided to accept the relevant claim rather than initiate litigation with the HMRC. “

HMRC and New Line Cinema declined to comment.

After a decade-long feud over the spoils of Hollywood adaptations of the novelist's classics, Tolkien's estate has agreed to pay HM Revenue & Customs more than £ 7million.  Pictured: Elijah Wood and Sean Astin in The Lord of the Rings: Return of the King

After a decade-long feud over the spoils of Hollywood adaptations of the novelist’s classics, Tolkien’s estate has agreed to pay HM Revenue & Customs more than £ 7million. Pictured: Elijah Wood and Sean Astin in The Lord of the Rings: Return of the King

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