Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential merits of introducing (a) relief and (b) a discounted rate for small art galleries following the increase in anti-money laundering supervision fees.

Economic crime presents a substantial threat to UK security and stability, and anti money laundering supervisors have an important role to play to ensure that supervised businesses understand and manage the risks to which they are exposed. HM Revenue & Customs supervises art market participantsalongside businesses in several other sectors.

It is policy of this, and previous Governments, that the cost of supervision should be met by supervised businesses and not through general taxation. HMRC has recently published its intention to increase some of the fees that itcharges for supervision to ensure that it has the income it needs to meet its obligations as a supervisor. HMRC is considering comments from businesses and trade bodies and will publish its next steps shortly. The Money Laundering Regulations apply only to sales of art exceeding the equivalent of €10,000 in value, which excludes 80% of businesses in the sector. HMRC hasconsidered the impact of the proposed fee increases on businesses against its needs as a supervisor and intends to minimise impact on supervised businesses, especially the vast majority who trade from a single premises.