Autumn Budget 2021: New anti-money laundering levy announced

A new Anti-Money Laundering Levy will be introduced from 1 April 2022 for certain types of business.  They will pay an annual levy depending on their turnover for the year.

The relevant sectors are:

  • credit institutions
  • financial institutions
  • auditors, insolvency practitioners, external accountants and tax advisers
  • independent legal professionals
  • trust or company service providers
  • estate agents and letting agents
  • high value dealers, casinos, auction platforms and art market participants
  • cryptoasset exchange providers and custodian wallet providers

The levies to be charged will be:

  • Small entities (less than £10.2 million pa in UK revenue) – Exempt
  • Medium sized entities (£10.2 million to £36 million) – expected to be £5,000 to £15,000
  • Large (£36 million to £1 billion) – expected to be £30,000 – £50,000
  • Very large (over £1 billion) – expected to be £150,000 to £250,000

The first levy will be payable for the year ending 31 March 2023, payable during the following year.

The final level of fees and details of the rules will be announced in due course.

The government aims to raise £100 million per year from the levy, which it intends to spend on initiatives to tackle money laundering.

For more expert Autumn Budget insight and analysis, please visit our Budget hub.