A New Tax: The Economic Crime Levy
The Economic Crime Levy is a new tax aimed at tackling financial crime and will apply to a range of sectors.
It is designed to fund investigations and prosecutions related to economic crimes such as money laundering and fraud, and to promote greater transparency in the financial industry.
The tax will apply to businesses subject to anti-money laundering (AML) supervision, which includes solicitors, estate agents, accountants, and financial advisers, as well as high value dealers such as car dealerships and scrapyards.
However, the tax only applies to businesses with a turnover in excess of £10.2m, with smaller businesses currently exempt.
Businesses subject to the Economic Crime Levy will be required to pay an annual charge based on their turnover. The charge will be £10,000 for a business with a turnover up to £36m and £36,000 for larger businesses. The tax came into effect for the year ended 31 March 2023 and the first charge is payable by 30 September 2023.
More information on the Economic Crime Levy can be found on the UK government website.
For further information, please contact Alan Rolfe on 023 8046 1235