Compliance with anti-money laundering is going to become much more expensive for medium to bigger agents after April 1.

The cap of the fee payable by estate agents with more than 20 premises is being abolished.

It means they will be paying the same £110 fee per premises as other agents.

The increase will add thousands to the bills of a number of agents – particularly the big corporates, but also some of the independent regional businesses.

For example, Countrywide says on its website that it has 1,300 branches.

Currently, it would be paying £2,200 for 20 offices. Assuming that the 1,300 are all individual premises, the firm would be paying £143,000.

Foxtons, with 51 branches according to its website, would from April be paying £5,600.

Some smaller agents had objected to what they saw as the unfairness of the current regime, which effectively exempted larger agents from fees, slashing thousands off their bills.

One agent, James Wyatt of Barton Wyatt in Surrey, took it up with his local MP who in turn raised it with the Chancellor.

HMRC yesterday announced that while it is retaining its current fee for this year, next year (2016/2017) it will be going up to £115.

HMRC is also introducing from April a non-refundable application fee of £100 for businesses applying to be registered for the first time.

In addition, also from April, it is increasing the fit and proper persons test charge from £50 to £100.

HMRC had consulted on proposed changes, offering a number of options all designed to bring it in more revenue which it said it needed to cover its costs.

But it says the option that included dropping the fee structure for larger agents received the most support.

HMRC’s findings and conclusions can be found here