Do Capital Allowances advisers require AML supervision?
Firms and sole practitioners providing capital allowances advice require AML supervision. This is because capital allowances advice falls within the definition of tax advice.
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR) sets out who is required to be AML supervised and includes tax advisers. The MLR state the following in Regulation 11(d):
“tax adviser means a firm or sole practitioner who by way of business provides material aid, or assistance or advice, in connection with the tax affairs of other persons, whether provided directly or through a third party, when providing such services.”
Accountants must also be AML supervised and the regulations define an accountant who needs to be registered as someone who provides accountancy services by way of business.
Indicators of whether a firm or sole practitioner is providing accountancy or tax advice services may include:
- Recording, reviewing, analysing, calculating or reporting financial information.
- Producing client reports on financial accounts.
- Giving a customer specific tax advice, including advice on whether something is liable to a tax or duty.
- Providing advice on capital allowances claims and whether items are eligible for capital allowances.
- Capital allowances computations – the calculation or advice on the tax relief that can be claimed on an asset.
When reviewing member information to determine whether they are capital allowance advisers the CIOT and ATT will consider:
a. The information provided by the member on the services they provide for example:
| Service provided | Tax advice subject to AML supervision |
| Valuation – eg. Widget machine Y was worth £8,000 when the building was purchased | Not subject to AML supervision |
| Commenting on whether capital allowances are due, and what allowances may be claimed eg: Widget machine Y was worth £8,000 and qualifies for capital allowances. The annual investment allowance can be claimed on this type of machinery | Subject to AML supervision |
| Preparing calculations of the capital allowances which can be claimed on assets (even if the firm do not submit the claims themselves) | Subject to AML supervision |
b. The name of the firm/practice and their website information. Firms/practices referring on their websites to tax advice, tax advisory services, capital allowances consultancy, or capital allowances advice are holding themselves out to the public as capital allowances advisers and therefore as tax advisers.
The RICS website provides additional guidance for members of RICS in relation to services which require AML supervision here.
If you do need to register for AML supervision, please refer to the guidance on the AML Registration page here. There is also a considerable amount of guidance on our website as to how to meet the requirements of the MLR.
If you are unsure whether your firm requires AML supervision, or are concerned that you require AML supervision and have not registered previously, please email [email protected] and we would be happy to discuss your position and any queries you have. Further information on registering for AML supervision can be found on the ATT website here.