The grandchildren of Wilbert Awdry—the creator of Thomas the Tank Engine—have won a tax dispute with HMRC concerning how tax applies to royalties from the series. According to reporting, the case is brought by the managers of a trust set up around the author’s estate after his death in 1972. Nearly three decades after Awdry’s death, the trust’s administrators become involved in a court fight with HMRC over a tax bill they sought to reduce relating to royalty payments tied to the franchise.
All accounts describe the dispute as a long-running battle over the tax treatment of multimillion-pound royalties. The coverage frames it as a legal contest between the estate’s trust managers and HMRC, with the trust’s side seeking to pay less tax so that more proceeds can be distributed to beneficiaries. The Independent and other outlets note the timing: the challenge occurs decades after Awdry’s death, as royalty streams continue to generate revenue and administrative decisions about tax obligations come under scrutiny. The grandchildren ultimately succeed in the dispute, meaning HMRC’s position is not upheld.
