HMRC has made the Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2025 (S.I. 2025/1146), clarifying who repays overpaid amounts once unpaid levy debts are transferred. The instrument was made on 30 October 2025, laid before the House of Commons on 4 November 2025, and comes into force on 25 November 2025.
The change inserts a new paragraph into regulation 18 of the Economic Crime (Anti-Money Laundering) Levy Regulations 2022 (S.I. 2022/269). It confirms that where HMRC is treated as the appropriate collection authority under regulation 25, HMRC is also the authority responsible for repaying any amount of the levy that was not due.
Under Part 3 of the Finance Act 2022, collection responsibilities for the levy sit with the “appropriate collection authorities”: HM Revenue & Customs, the Financial Conduct Authority and the Gambling Commission. Regulation 25 of the 2022 Regulations allows the FCA or the Gambling Commission to transfer responsibility for unpaid amounts to HMRC for recovery.
The amendment addresses a practical gap. If, after such a transfer, a firm pays an amount that was not due-whether through miscalculation, duplication or error-the refund claim is to be made to HMRC rather than back to the FCA or the Gambling Commission. Repayment and collection are aligned with the same authority in these cases.
For operational teams, the impact is administrative rather than fiscal. Liability thresholds, rates and payment timetables are unchanged. From 25 November 2025, where responsibility has moved under regulation 25, HMRC becomes the single point of contact for repayment of overpaid sums under regulation 18.
The Regulations were made by HMRC Commissioners Penny Ciniewicz and Jonathan Athow under powers in sections 58 and 64 of the Finance Act 2022. In line with section 64(5) of that Act, HMRC consulted the Treasury, the FCA and the Gambling Commission before making the instrument.
Firms whose unpaid levy has been transferred should ensure internal records, remittance instructions and customer support scripts route overpayment queries to HMRC once the amendment takes effect. Aligning refund authority with the transferred collection role is intended to reduce double‑handling between agencies.
An illustrative scenario is a gambling operator whose unpaid levy has been transferred by the Gambling Commission to HMRC under regulation 25. If the operator then identifies an overpayment, the repayment authority is HMRC. The same approach applies where the FCA has transferred responsibility.
The Explanatory Note to S.I. 2025/1146 states that the amendment ensures HMRC is responsible for any repayment when responsibility for unpaid amounts has been transferred to HMRC and a person has paid an amount that was not due. The policy scope is narrow and does not change the underlying levy design in the Finance Act 2022.