Hayley Mills Says She Lost Disney Earnings to High Taxes in Podcast Interview

She appeared alongside her sister, Juliet Mills, to mark her 80th birthday. Mills stated that she earned significant sums from Disney films but lost most to taxes. Mills explained that her earnings were placed in a trust fund due to high tax rates at the time. She said super tax was 90% and the trust was intended to manage this. However, issues with the trust setup led to a large tax bill.

Mills noted that her father, Sir John Mills, and the family's solicitor, Stanley Passmore, were involved in setting up the trust. She described Passmore as having poorly advised the family. Juliet Mills added that Passmore also managed their father's business decisions.

The trust was similar to one set up for actor Jack Hawkins, which faced challenges from tax authorities. Mills said this created a precedent in British law that affected her case. She referred to Passmore as a crook for his handling of the situation.

Mills turned 21, she received a tax demand instead of her funds, according to her account. The Times of London reported that the trust was not set up correctly, leading to a 91% surtax. Mills contested the bill but found no resolution without suing her father or Passmore.

“And so, when I reached 21, instead of being given the key to the door, I was handed an envelope across a green baize tablecloth by Stanley, which was the Inland Revenue basically saying, ‘Thank you. You owe us 90% of your earnings,’" — Hayley Mills (nypost.com). Mills consulted a lawyer to fight the case, but it was unsuccessful. However, the House of Lords overturned this decision, leaving her responsible for the bill. The Los Angeles Times reported that Mills appealed to the British government for years, with the final denial in 1975. She estimated that a win would have allowed her to keep about £2 million, equivalent to over $17 million today.”