The grandchildren of Wilbert Awdry, the clergyman who created the Thomas the Tank Engine stories, have won a long-running legal dispute with HM Revenue and Customs over tax owed on multimillion-pound royalty payments. The case centred on how earnings from the enduringly popular children's franchise, which has generated significant licensing and royalty income over the decades, should be taxed within the family estate.

Full details of the tribunal's reasoning were not available in the source material, but the ruling represents a win for the Awdry family against the tax authority's claim on the royalty proceeds. Thomas the Tank Engine, created by Awdry in the 1940s, has grown into a global media franchise spanning books, television and merchandise, generating substantial ongoing income for rights holders.