A new tax called the ‘Economic Crime (Anti-Money Laundering) Levy’ is created and the appropriate collection authority is responsible for the collection and management of it, namely the Financial Conduct Authority, the Gambling Commission, or HMRC is introduced for FY22 onwards.
‘This levy is intended to raise approximately £100 million per annum from the antimoney laundering (AML) regulated sector to help fund AML reforms and deliver reforms in the Economic Crime Plan.
The Levy is charged for a financial year if a person carries on a regulated business at any point during the financial year and the person’s UK revenue for the financial year is medium, large, or very large.
The amount charged for a financial year is:
- In the case of a person whose UK revenue for the financial year is medium £10,000;
- In the case of a person whose UK revenue for the financial year is large, £36,000; and
- In the case of a person whose UK revenue for the financial year is very large, £250,000.
The amounts are to be proportionately reduced in the case of a person who carries on a regulated business only for part of the financial year and no amount of payment made in respect of the Levy is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.
A person’s UK revenue:
- Is medium for a financial year if the person’s UK revenue for the relevant accounting period is more than £10.2m but not more than £36m;
- Is large for a financial year if the person’s UK revenue for the relevant accounting period is more than £36m but not more than £1bn; and
- Is very large for a financial year if the person’s UK revenue for the relevant accounting period is more than £1bn.
These amounts are proportionately adjusted if the relevant accounting period of the person is a period other than 12 months.
Broadly, in the case of a UK resident person, the person’s UK revenue is all of that person’s revenue after deducting so much of their revenue as, on a just and reasonable apportionment, is attributable to the activities of any permanent establishment of the person in a territory outside the UK. In the case of a non-UK resident person, the person’s UK revenue is so much of the person’s revenue as is attributable to activities of any permanent establishment of the person in the UK.
