The UK tax authority HM Revenue & Customs (HMRC) has released a list of nearly 50 art businesses, including renowned galleries, that failed to meet money laundering registration regulations by the June 2021 deadline. Penalties, which spanned early 2024, averaged above £3,000 and reached £13,000 for some. Many businesses who came forward voluntarily have expressed frustration over high fines, with experts questioning the fairness of penalties based on gross profits. Compliance advocates suggest that smaller businesses especially are at risk and recommend open communication with HMRC instead of abandoning appeals.
Among those listed are the galleries Opera, Carl Kostyál and White Cube. The fines outlined were issued between 1 January 2024 and 30 September 2024, with AMP penalties averaging above £3,000 and reaching as high as £13,000, all for failing to apply for registration by the June 2021 deadline.
'Late registration fines are calculated by HMRC based on a set formula and one of the strands of calculation takes into account the gross profits of the business's less allowable expenses,' says art compliance consultant, Rakhi Talwar.
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