Crime and Policing Act 2026

Schedule 21 Confiscation orders: England and Wales

Section 189(1) Part 1 The principal objective 1 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) At the beginning of Part 2 insert— Exercise of powers: general The principal objective 5A (1) This section applies to any power conferred by or under this Part on— (a) a court; (b) a prosecutor; (c) a person who is an appropriate officer within the meaning given by section 41A(3) or 47A(1); (d) any other person whose functions include the investigation of crime; (e) a receiver appointed under section 48 or 50. (2) The principal objective in exercising a power to which this section applies in relation to a defendant is to deprive the defendant of the defendant’s benefit from criminal conduct, so far as within the defendant’s means. (3) The defendant’s means are to be taken to include any tainted gifts made by the defendant. (4) A court or person must exercise any power to which this section applies in the way which the court or person considers is best calculated to further the principal objective. (5) The duty under section 2A(1) does not apply to the exercise by a relevant authority of a power to which this section applies if and to the extent that exercising the power in compliance with that duty would be inconsistent with doing so in compliance with the duty under subsection (4). (6) In subsection (5) “relevant authority” has the meaning given by section 2A(2). (3) In the italic heading before section 69, after “of” insert “specific”. (4) In section 69 (powers of court and receiver etc)— (a) in the heading, at the beginning insert “Specific”; (b) in subsection (3), in the words before paragraph (a), after “subject to” insert “the principal objective (see section 5A) and”. Part 2 Criminal lifestyle Prosecutor’s discretion 2 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 6(4) (making of order: criminal lifestyle and conduct)— (a) in paragraph (a), at the beginning insert “if asked to do so by the prosecutor”; (b) in paragraph (b), after “if” insert “(pursuant to paragraph (a))”; (c) in paragraph (c), at the beginning insert “if it is not asked to decide whether the defendant has a criminal lifestyle or”. (3) In section 16 (statement of information)— (a) after subsection (2) insert— (2A) The statement of information must indicate whether or not the case is one in which the court is asked to decide whether the defendant has a criminal lifestyle (see section 6(4)). ; (b) in subsection (3), for “prosecutor believes”, in the first place it occurs, substitute “case is one in which the court is asked to decide whether”; (c) in subsection (5), for “prosecutor does not believe” substitute “case is one in which the court is not asked to decide whether”. (4) In section 20(2) (no order made: reconsideration of benefit)— (a) omit “has decided that”; (b) in paragraph (a), for “the defendant has a criminal lifestyle but” substitute “has decided under section 6(4)(b) that the defendant”; (c) in paragraph (b), for “the defendant does not have a criminal lifestyle and” substitute “has decided under section 6(4)(c) that the defendant”. The serious risk of injustice test 3 In section 10 of the Proceeds of Crime Act 2002 (assumptions to be made in case of criminal lifestyle), after subsection (6) insert— (6A) In determining whether there would be a serious risk of injustice if a required assumption were made in relation to particular property or expenditure, the court must consider all the circumstances of the case and must, in particular, give the appropriate weight to— (a) any evidence about the serious risk of injustice that has been made available to it, and (b) any explanation given by the defendant for being unable to provide evidence that would have shown the assumption to be incorrect. Cases in which defendant has a criminal lifestyle 4 (1) Section 75 of the Proceeds of Crime Act 2002 (criminal lifestyle) is amended as follows. (2) In subsection (3)— (a) after “benefited”, in the first place it occurs, insert “, or intended to benefit,”; (b) in paragraph (a)— (i) for “three”, in both places it occurs, substitute “two”; (ii) after “benefited” insert “or intended to benefit”; (c) in paragraph (b), after “benefited” insert “or intended to benefit”. (3) The amendments made by sub-paragraph (2)(a), (b)(ii) and (c) do not apply in relation to conduct that took place wholly or partly before the date on which those provisions come into force. Criminal lifestyle offences 5 (1) Schedule 2 to the Proceeds of Crime Act 2002 (criminal lifestyle offences) is amended as follows. (2) In paragraph 8(1) (offences in connection with brothels), after “section 33” insert “, 33A”. (3) After paragraph 9B insert— Environmental offences 9C (1) An offence under section 33(1)(a) of the Environmental Protection Act 1990 (depositing, or causing or permitting the deposit of, certain waste, otherwise than in accordance with an environmental permit). (2) An offence under regulation 38(1)(a) of the Environmental Permitting (England and Wales) Regulations 2016 (S.I. 2016/1154) (operating a regulated facility, or causing or knowingly permitting a water discharge activity or groundwater activity, otherwise than in accordance with an environmental permit). (4) An amendment made by sub-paragraph (2) or (3) does not apply in relation to an offence committed wholly or partly before the coming into force of the sub-paragraph in question. Part 3 Provisions concerning amount to be paid under confiscation order Hidden property 7 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 9(1) (available amount)— (a) omit the “and” at the end of paragraph (a); (b) at the end of paragraph (b) insert , and (c) any amount determined under section 9A (value of hidden property). (3) After that section insert— Hidden property 9A (1) This section applies where it appears to a court calculating the available amount that— (a) the defendant’s benefit from the conduct concerned exceeds the total of the values (as at the time the confiscation order is made) of— (i) all the free property then held by the defendant, and (ii) all tainted gifts, and (b) some or all of that excess is a result of property having been hidden by or on behalf of the defendant. (2) The court must determine the total value of the property that the court considers has been hidden by or on behalf of the defendant. (3) When making a determination under this section the court must, in particular, consider the extent to which there are other circumstances that may account for the excess mentioned in subsection (1)(b), for example— (a) expenditure incurred by the defendant which has or may have been met from the defendant’s benefit from the conduct concerned; (b) changes in the value of the property held by the defendant. (4) In section 21 (order made: reconsideration of benefit), in subsection (8)(b), for “section 9” substitute “sections 9 and 9A”. (5) In section 22 (order made: reconsideration of available amount), in subsection (3), for “section 9” substitute “sections 9 and 9A”. (6) In section 23 (inadequacy of available amount: variation of order), in subsection (2), for “section 9” substitute “sections 9 and 9A”. Tainted gifts 8 In section 77 of the Proceeds of Crime Act 2002 (tainted gifts), for subsection (5) substitute— (5) A gift is tainted if it was made by the defendant— (a) at any time after the commission of the offence concerned, or (b) if the defendant’s particular criminal conduct consists of two or more offences and they were committed at different times, at any time after the commission of the earliest of the offences. Benefit 9 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 76 (conduct and benefit), after subsection (7) insert— (8) But in a case where— (a) the person— (i) intended to have only a limited power to control or dispose of all or part of the property, (ii) held the property temporarily, or (iii) is treated as obtaining the property as a result of section 84(3), and (b) the court believes that the amount found under subsection (7) in relation to the property would produce a result that would be unjust, the court may reduce that amount to such amount (including zero) as the court believes is just. (3) In section 84 (property: general provisions)— (a) in subsection (2)(b), at the end insert “(and see subsection (3))”; (b) after subsection (2) insert— (3) If, as a result of or in connection with conduct, a person keeps property that the person already has, where the court believes it just to do so the person is to be treated as obtaining the property as a result of or in connection with the conduct. Value of property obtained 10 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 79(5) (value: the basic rule), after “80” insert “, 80A”. (3) In section 80 (value of property obtained from conduct), after subsection (4) insert— (5) If only a proportion of the property was obtained by the person as a result of or in connection with the person’s criminal conduct, only that proportion is to be taken into account for the purposes of subsections (2) to (4). (6) This section does not apply in a case where section 80A applies. (4) After that section insert— Mortgages 80A (1) This section applies if— (a) a person uses a loan obtained as a result of or in connection with the person’s criminal conduct to purchase an interest in land, (b) the loan is secured by a mortgage over the interest in land, and (c) the interest in land has increased in value during the loan period. (2) The value, at the material time, of the property obtained as a result of or in connection with the person’s criminal conduct is to be taken to be the amount found using the following formula— A B × C where— A is the amount of the loan; B is the value of the interest in land at the time it was purchased; C is the amount by which the interest in land has increased in value between that time and the end of the loan period. (3) The value of the interest in land at the beginning and end of the loan period is to be found in accordance with section 79. (4) If the loan period ends before the material time, the amount found under subsection (2) is to be adjusted to take account of changes in the value of money between the end of the loan period and the material time. (5) In this section— “the loan period” is the period between the time when the loan is obtained and the earlier of— the time when the principal, and any interest due, is repaid, and the material time; “the material time” is the time the court makes its decision. Value of property sold or destroyed 11 (1) Section 80 of the Proceeds of Crime Act 2002 (value of property obtained from conduct) is amended as follows. (2) In subsection (2), at the beginning insert “Except where subsection (3A) or (3B) applies,”. (3) After subsection (3) insert— (3A) Where the person no longer holds the property obtained because it has been sold, the value of the property at the material time is the greater of the following— (a) the proceeds of the sale, adjusted to take account of later changes in the value of money; (b) the value (immediately before the sale) of the property, adjusted to take account of later changes in the value of money. (3B) Where the person no longer holds the property obtained because it has been destroyed by virtue of a court order under section 51(2)(e) or section 67AA (orders for destruction of cryptoassets), the value of the property at the material time is the market value of the property as set out in the court order, adjusted to take account of later changes in the value of money. (3C) For the purposes of subsection (3A)(a), if the proceeds of the sale are in a currency other than sterling, they must be taken to be the sterling equivalent calculated in accordance with the rate of exchange prevailing at the end of the day of the sale. (4) In subsection (4), after “(2)(a) and (b)” insert “and subsection (3A)(b)”. Part 4 Priority orders Priority orders 12 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 13 (effect of confiscation order on court’s other powers), for subsections (5) and (6) substitute— (5) Where a court makes a confiscation order or priority order the effect of which is that subsection (6) applies, the court making that order must also make a priority payment direction. (6) This subsection applies if, in the same proceedings (see section 85 for the meaning of “proceedings”) the following are made against the same person— (a) a confiscation order, and (b) one or more priority orders. (7) A “priority payment direction” is a direction that any amount payable under the priority order (or orders) that remains unpaid when any sum is recovered under the confiscation order is to be paid out of that sum. (3) In section 19 (no order made: reconsideration of case), omit subsection (8). (4) In section 20 (no order made: reconsideration of benefit), omit subsection (12). (5) In section 21 (order made: reconsideration of benefit)— (a) in subsection (9), omit paragraphs (c), (ca) and (d); (b) omit subsection (10). (6) In section 22 (order made: reconsideration of available amount)— (a) in subsection (5), omit paragraphs (c) and (d); (b) omit subsection (6). (7) In section 55 (sums received by designated officer), for subsection (5) substitute— (5) If a priority payment direction was made under section 13(5), the designated officer must next apply the sums in payment of any amounts payable under the priority order (or orders) that remain unpaid. (5A) In a case in which there is more than one priority order the sums are to be applied in the order in which the priority orders were made, starting with the earliest of them. Part 5 Compensation directions Compensation directions 13 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) After section 22 insert— Increased available amount: compensation directions 22A (1) This section applies where under section 22(4) a court varies a confiscation order so as to increase the amount required to be paid under the order. (2) The court may make a supplementary compensation direction if— (a) a compensation order has been made against the defendant in respect of the offence (or any of the offences) concerned, and (b) at the time the compensation order was made, the amount of the compensatable loss that had been sustained by the person in whose favour it was made was greater than the amount required to be paid by the compensation order. (3) A supplementary compensation direction is a direction that so much of the amount recovered under the confiscation order as the court considers appropriate is to be paid to the person in whose favour the compensation order was made. (4) That amount must not exceed the difference between— (a) the amount of the compensatable loss that had been sustained by the person at the time the compensation order was made, and (b) the amount required to be paid to the person by the compensation order, or so much of that difference as remains unpaid. (5) If the amount mentioned in subsection (4)(a) exceeds any applicable maximum amount, subsection (4) applies as if the amount in subsection (4)(a) were the applicable maximum amount. (6) The court may make a compensation direction if— (a) at the time the confiscation order was made, a person was known to the court to have sustained compensatable loss as a result of the offence (or any of the offences) concerned, but (b) a compensation order has not been made against the defendant in respect of that compensatable loss. (7) A compensation direction is a direction that so much of the amount recovered under the confiscation order as the court considers appropriate is to be paid to the person mentioned in subsection (6)(a). (8) That amount must not exceed— (a) the amount of the compensatable loss that had been sustained by the person as a result of the offence (or any of the offences) concerned at the time the confiscation order was made, or (b) so much of that amount as remains unpaid. (9) If the amount mentioned in subsection (8)(a) exceeds any applicable maximum amount, subsection (8) applies as if the amount in subsection (8)(a) were the applicable maximum amount. (10) In this section— “applicable maximum amount” means the maximum amount of compensation (if any) that a compensation order made against the defendant in respect of the offence (or offences) concerned could have required the defendant to pay; “compensatable loss” means personal injury, loss or damage of a kind in respect of which a compensation order could have been made; “compensation order” means an order under— section 130 of the Powers of Criminal Courts (Sentencing) Act 2000, or Chapter 2 of Part 7 of the Sentencing Code. (3) In section 55 (sums received by designated officer) after subsection (5A) (inserted by paragraph 12(7)) insert— (5B) If under section 22A (compensation directions) a direction was made for an amount to be paid to a person, the designated officer must next apply the sums in payment of that amount. Part 6 Procedural matters Timing of confiscation proceedings and effect on sentencing 14 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) Before section 16 insert— Timing of confiscation proceedings and effect on sentencing 15A (1) This section applies where the court sentences the defendant for the offence (or any of the offences) concerned before it proceeds under section 6. (2) In sentencing the defendant for the offence (or any of the offences) concerned the court must not— (a) impose a fine on the defendant, (b) make an order falling within section 13(3)(a), (c) make an order falling within section 13(3)(b), (c) or (d) other than any such order made in respect of property that has little or no market value at the time of sentencing, (d) make an order for the payment of compensation under Chapter 2 of Part 7 of the Sentencing Code, (e) make an order for the payment of a surcharge under section 42 of that Code, or (f) make an unlawful profit order under section 4 of the Prevention of Social Housing Fraud Act 2013. (3) The court must draw up a timetable for the proceedings under section 6 before the end of the hearing at which it sentences the defendant for the offence (or, where there is more than one, the last offence) concerned. (4) The court may revise a timetable drawn up under subsection (3). (5) Section 6 has effect as if the defendant’s particular criminal conduct included conduct which constitutes offences which the court has taken into consideration in deciding the defendant’s sentence for the offence or offences concerned. (6) The court may, after the conclusion of the proceedings under section 6, vary the sentence by— (a) imposing a fine on the defendant, (b) making an order falling within section 13(3), (c) making an order for the payment of compensation under Chapter 2 of Part 7 of the Sentencing Code, (d) making an order for the payment of a surcharge under section 42 of that Code, or (e) making an unlawful profit order under section 4 of the Prevention of Social Housing Fraud Act 2013. (7) But the court may proceed under subsection (6) only within the period of 56 days beginning with the day on which the court— (a) makes a confiscation order under section 6, or (b) decides not to make such an order. (8) For the purposes of— (a) section 18(2) of the Criminal Appeal Act 1968 (time limit for notice of appeal or of application for leave to appeal), and (b) paragraph 1 of Schedule 3 to the Criminal Justice Act 1988 (time limit for notice of application for leave to refer a case under section 36 of that Act), the sentence must be regarded as imposed or made on the day on which it is varied under subsection (6). (3) Omit sections 14 and 15 (postponement of confiscation proceedings). Early resolution meeting 15 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 6, after subsection (7) insert— (7A) But the court may, if it believes it is appropriate to do so, decide any question arising under subsection (4) or (5) in accordance with an agreement reached by the prosecutor and defendant at an EROC meeting as mentioned in section 15B(3)(a). (3) After section 15A insert— Early resolution meeting 15B (1) This section applies where— (a) the Crown Court is proceeding under section 6, and (b) the court directs that an early resolution of confiscation meeting (an “EROC meeting”) is to be held. (2) Before the court proceeds as mentioned in subsection (4) of section 6 (making of order) the prosecutor and the defendant (or the defendant’s legal representative) must attend an EROC meeting. (3) An EROC meeting is a meeting held with a view to the prosecutor and defendant— (a) reaching agreement on the question whether a confiscation order is required to be made against the defendant and, if so, on the amount required to be paid by the defendant under the confiscation order, or (b) in a case where agreement as mentioned in paragraph (a) is not reached, identifying the questions to be decided by the court in proceeding under section 6 on which they disagree. (4) A direction under subsection (1)(b)— (a) may be given by the court on application by the prosecutor or of its own motion; (b) may require or permit the attendance at an EROC meeting of— (i) any person who it appears to the court holds, or may hold, an interest in key property; (ii) an accredited financial investigator; (iii) any other person that the court considers appropriate. (5) A direction under subsection (1)(b) may be varied or revoked by the court on application by the prosecutor or of its own motion. (6) Key property is property held by the defendant that the court believes will need to be realised or otherwise used to satisfy any confiscation order that may be made. Early resolution hearing 15C (1) Following an EROC meeting, the court must hold an EROC hearing if— (a) the prosecutor and defendant did not reach agreement as mentioned in section 15B(3)(a), or (b) the prosecutor and defendant did reach agreement, but the court decided not to make a confiscation order under section 6 requiring the defendant to pay the amount agreed. (2) An “EROC hearing” is a hearing for the court to consider the next steps in the section 6 proceedings. (3) In this section “EROC meeting” has the meaning given by section 15B. Part 7 Reconsideration and provisional discharge Order made: reconsideration 16 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) After section 21 insert— Order made: reconsideration of benefit on decrease in value and sale etc 21A (1) This section applies if— (a) a court has made a confiscation order, (b) there is relevant property, (c) an application to proceed under this section is made to the Crown Court by— (i) the prosecutor, (ii) a receiver appointed under section 50, or (iii) the designated officer for a magistrates’ court, and (d) the applicant believes that if the court were to make a new calculation of the defendant’s benefit and in doing so applied section 21(3) to (6), the amount found would not exceed the amount that would be found if the court were to make a new calculation of the defendant’s benefit under subsection (4). (2) For the purposes of this section, property is “relevant property” if the property was obtained by the defendant as a result of or in connection with the conduct concerned and— (a) it was held by the defendant when the relevant amount was calculated, but (b) it is no longer held by the defendant because it has been— (i) sold, or (ii) destroyed by virtue of a court order under section 51(2)(e) or section 67AA (orders for the destruction of cryptoassets). (3) In a case where this section applies, the court must determine whether A is less than B, where— “A” is the total of the values of all relevant property as decided in accordance with section 80(3A) or (3B) (as appropriate), and “B” is the total of the values at which that property was taken into account when the relevant amount was calculated, adjusted to take account of changes in the value of money since it was calculated. (4) If A is less than B, the court must make a new calculation of the defendant’s benefit by— (a) adjusting the relevant amount to take account of changes in the value of money since it was calculated, and (b) deducting from that adjusted amount the amount by which A is less than B. (5) Subsection (6) applies where— (a) the court makes a new calculation of the defendant’s benefit under subsection (4), and (b) the court determines that C is less than D, where— “C” is the amount that, if it was adjusted to take account of changes in the value of money since the amount required to be paid was last determined, would give the amount found under the new calculation of the defendant’s benefit, and “D” is the amount required to be paid under the order. (6) The court must vary the order by substituting C for the amount required to be paid. (7) The variation of the order under subsection (6) does not— (a) affect the defendant’s liability to pay any interest which was payable under section 12 for a period before the variation of the order but which had not been paid at the time of the variation, or (b) give rise to any obligation to refund any amount already paid by the defendant under the order. (8) The relevant amount is— (a) the amount found as the defendant’s benefit for the purposes of the confiscation order, or (b) if one or more new calculations of the defendant’s benefit have been made under section 21 or this section, the amount found on the occasion of the last such calculation. (3) In section 21 (order made: reconsideration of benefit)— (a) after subsection (11) insert— (11A) Section 11 applies in relation to a confiscation order when it is varied under this section as it applies in relation to a confiscation order when it is made (reading references to the making of the order as references to the varying of the order and references to the day on which the order is made as references to the day on which the order is varied). (11B) Where section 12 applies in relation to a confiscation order that has been varied under this section, the reference in section 12(3)(c) to the day on which the order was made is to be read as a reference to the day on which the order was varied. ; (b) in subsection (13)— (i) in paragraph (a), for “if this section has not applied previously;” substitute “or”; (ii) for paragraph (b) substitute— (b) if one or more new calculations of the defendant’s benefit have been made under this section or section 21A, the amount found on the occasion of the last such calculation. (4) In section 22 (order made: reconsideration of available amount)— (a) after subsection (7) insert— (7A) Section 11 applies in relation to a confiscation order when it is varied under this section as it applies in relation to a confiscation order when it is made (reading references to the making of the order as references to the varying of the order and references to the day on which the order is made as references to the day on which the order is varied). (7B) Where section 12 applies in relation to a confiscation order that has been varied under this section, the reference in section 12(3)(c) to the day on which the order was made is to be read as a reference to the day on which the order was varied. ; (b) in subsection (9), in paragraph (b), after “section 21” insert “or 21A,”. (5) In section 39 (reconsideration etc: variation of prison term), in subsection (1)(a), after “21,” insert “21A,”. Part 9 Restraint orders Conditions for making of restraint order: risk of dissipation 25 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 40 (conditions for exercise of power to make restraint order), for subsection (1) substitute— (1) Section 41 (power to make a restraint order) applies if— (a) any of the first to fifth conditions is satisfied (see subsections (2) to (6)), and (b) there is a real risk that relevant realisable property held by any person will be dissipated unless the Crown Court exercises the powers conferred by section 41 in relation to that property. (1A) For the purposes of this section— (a) “relevant realisable property” is realisable property that could be used for the purpose of satisfying any confiscation order that has been or may be made against the defendant; (b) a reference to relevant realisable property being “dissipated” is to it ceasing to be available for that purpose. (1B) In determining for the purposes of subsection (1)(b) whether there is a real risk of relevant realisable property being dissipated, the court must, in particular, have regard to the following— (a) the nature of the relevant realisable property; (b) the extent to which any person has taken steps with a view to relevant realisable property being dissipated; (c) any circumstances of a person who holds the relevant realisable property that may affect the ease with which they would be able to secure the dissipation of the property; (d) any evidence of such a person’s character; (e) the nature of the defendant’s criminal conduct; (f) the amount by which the defendant is suspected or believed to have benefited from their criminal conduct; (g) the stage of the proceedings for an offence against the defendant. (3) In section 41(1) (power to make restraint order), for “If any condition set out in section 40 is satisfied” substitute “In a case where this section applies (see section 40),”. Exception to restraint orders for reasonable legal expenses 26 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 41 (restraint orders)— (a) omit subsections (2A) and (2B); (b) in subsection (3)— (i) omit “other”; (ii) after paragraph (b) insert— (c) be made subject to conditions. ; (c) in subsection (4), for the words before paragraph (a) substitute “Section 41ZA applies to an exception to a restraint order if the exception makes provision for any reasonable legal expenses which—”; (d) omit subsections (5A) and (5B); (e) omit subsection (10). (3) After section 41 insert— Exception for legal expenses in respect of offence with which confiscation proceedings concerned 41ZA (1) Where the court makes an exception to a restraint order under section 41(3) to which this section applies, it must ensure that the exception— (a) is limited to legal expenses that the specified person has reasonably incurred or that the person reasonably incurs, (b) specifies the total amount that may be released for legal expenses in pursuance of the exception, and (c) is made subject to the required conditions (in addition to any conditions imposed under section 41(3)(c)). (2) The Lord Chancellor may by regulations specify the required conditions for the purposes of subsection (1). (3) A required condition may, in particular— (a) restrict who may receive sums released in pursuance of the exception (by, for example, requiring released sums to be paid to professional legal advisers), or (b) be made for the purpose of controlling the amount of any sum released in pursuance of the exception in respect of an item of expenditure. (4) A required condition made for the purpose mentioned in subsection (3)(b) may, for example, provide for a sum to be released in respect of an item of expenditure only if— (a) the court has assessed the amount allowed by the regulations in respect of that item, and (b) the sum is released for payment of the assessed amount. (5) For the purposes of subsection (4), the regulations may, in particular, make provision— (a) limiting the amount of remuneration allowable to representatives for a unit of time worked; (b) limiting the total amount of remuneration allowable to representatives for work done in connection with proceedings or a step in proceedings; (c) limiting the amount allowable in respect of an item of expenditure incurred by a representative or incurred, otherwise than in respect of the remuneration of a representative, by a party to proceedings. (6) Before making regulations under this section, the Lord Chancellor must consult such persons as the Lord Chancellor considers appropriate. (4) In section 459 (orders and regulations), in each of subsections (4)(a) and (6)(a), omit “41(5A),”. Exception to restraint order for reasonable living expenses 27 In section 41 of the Proceeds of Crime Act 2002 (restraint orders)— (a) after subsection (3) insert— (3A) In making an exception to a restraint order that makes provision for reasonable living expenses the court must, in particular, have regard to the following— (a) the period for which the restraint order is to have effect; (b) the specified person’s applicable standard of living (see subsection (11)); (c) the specified person’s means; (d) the value of relevant realisable property held by the specified person in relation to the amount that the defendant is, or is likely to be, required to pay under a confiscation order; (e) the extent to which expenditure by the specified person is necessary or desirable for the purpose of improving or maintaining the value of relevant realisable property held by them. ; (b) at the end insert— (11) In this section— “applicable standard of living”, in relation to a specified person, means— the person’s standard of living immediately before the making of the restraint order, or in a case where there is reasonable cause to believe that the person enjoys a higher standard of living as a result of criminal activity, the standard of living that the person would enjoy but for that activity; “relevant realisable property” has the same meaning as in section 40. Discharge of restraint order etc: proceedings not started within reasonable time 28 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 41 (restraint orders)— (a) in subsection (7A), for “and (7C)” substitute “to (7CA)”; (b) after subsection (7C) insert— (7CA) In determining for the purposes of subsection (7B)(b) whether proceedings for the offence have not started within a reasonable time, the court must, in particular, have regard to the following— (a) the length of time that has passed since the making of the restraint order; (b) the reasons given by the prosecutor for proceedings not having started within that time; (c) the length and complexity of the criminal investigation, both before and after the making of the restraint order; (d) the extent to which the matters subject to that investigation include matters arising abroad; (e) the length and complexity of the potential proceedings; (f) the nature of the restraint order (for example, the extent of the property to which it relates); (g) the impact of the restraint order on any person affected by the order. (3) In section 42 (restraint orders: application, discharge and variation), after subsection (7) insert— (7A) In determining for the purposes of subsection (7)(a) whether proceedings for the offence have not started within a reasonable time, the court must, in particular, have regard to the following— (a) the length of time that has passed since the making of the restraint order; (b) the reasons given by the prosecutor for proceedings not having started within that time; (c) the length and complexity of the criminal investigation, both before and after the making of the restraint order; (d) the extent to which the matters subject to that investigation include matters arising abroad; (e) the length and complexity of the potential proceedings; (f) the nature of the restraint order (for example, the extent of the property to which it relates); (g) the impact of the restraint order on any person affected by the order. Restraint orders: effect of conviction 29 After section 42 of the Proceeds of Crime Act 2002 insert— Restraint orders: effect of conviction 42A (1) In making or varying a restraint order at any time after the defendant’s conviction for an offence, the Crown Court must have regard, in particular, to— (a) the fact of the defendant’s conviction, and (b) whether any of the following has been, or is likely to be, made against the defendant— (i) a compensation order under Chapter 2 of Part 7 of the Sentencing Code; (ii) an order requiring payment of a surcharge under section 42 of that Code; (iii) an unlawful profit order under section 4 of the Prevention of Social Housing Fraud Act 2013; (iv) a slavery and trafficking reparation order under section 8 of the Modern Slavery Act 2015. (2) Subsections (3) and (4) apply where— (a) the Crown Court makes a restraint order at a time when the defendant has not been convicted of an offence, and (b) the defendant is subsequently convicted of an offence at a time when the order remains in force. (3) If the restraint order is subject to an exception made under section 41(3), the Crown Court must review the appropriateness of the exception having regard, in particular, to the matters mentioned in subsection (1). (4) Following that review the court may vary the restraint order, whether or not an application has been made under section 42(3). Part 10 Management receivers Appointment of management receiver 30 (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 48 (appointment of management receiver)— (a) after subsection (1) insert— (1A) Subsection (2) also applies if— (a) a magistrates’ court has made a further detention order, and (b) an application is made to the Crown Court to proceed under subsection (2) by— (i) the prosecutor, or (ii) an accredited financial investigator. ; (b) in subsection (2), after “restraint order” insert “or (as the case may be) further detention order”; (c) after subsection (2) insert— (3) For the purposes of this section and section 49, a “further detention order” is an order made in relation to property under section 47M (further detention of property detained under section 47J). (3) In section 49 (powers of management receiver)— (a) in subsection (1), after “restraint order” insert “or (as the case may be) further detention order (referred to in this section as the “relevant order”)”; (b) in subsections (2), (5) and (6)(a), for “restraint order” substitute “relevant order”. (4) In section 63 (discharge and variation), in subsection (3)(a), after “section 40” insert “or 47B”. Part 11 Appeals Appeal rights in relation to confiscation proceedings 31 (1) The Proceeds of Crime Act 2002 is amended in accordance with sub-paragraphs (2) to (9). (2) After section 67D insert— Appeals Appeals in relation to confiscation orders 67E (1) If the Crown Court makes a confiscation order, the prosecutor may appeal to the Court of Appeal in respect of the order. (2) If the Crown Court decides not to make a confiscation order, the prosecutor may appeal to the Court of Appeal against the decision. (3) For the defendant’s right of appeal— (a) where the Crown Court makes a confiscation order, and (b) in respect of an order fixing the default term, see section 50(1) of the Criminal Appeal Act 1968 (the effect of which is that, for the purposes of the appeal rights conferred by that Act, both such orders form part of the defendant’s sentence). (4) On an appeal under subsection (1) the Court of Appeal— (a) may confirm, vary or quash the confiscation order, and (b) if it quashes the order, may direct the Crown Court to proceed afresh under section 6. (5) On an appeal under subsection (2) the Court of Appeal— (a) may confirm the decision, or (b) if it believes that the decision was wrong, may— (i) itself proceed under section 6 (ignoring subsections (1) to (3)), or (ii) direct the Crown Court to proceed afresh under that section. (6) An appeal lies to the Supreme Court from a decision of the Court of Appeal on an appeal under this section, at the instance of the defendant or the prosecutor. (7) On an appeal from a decision of the Court of Appeal to confirm, vary or make a confiscation order the Supreme Court may confirm, vary or quash the order. (8) On an appeal from a decision of the Court of Appeal to confirm the decision of the Crown Court not to make a confiscation order, or from a decision of the Court of Appeal to quash a confiscation order, the Supreme Court may— (a) confirm the decision, or (b) direct the Crown Court to proceed afresh under section 6 if it believes the decision was wrong. (9) In proceeding afresh under section 6 pursuant to this section, the Crown Court must comply with any directions the Court of Appeal or (as the case may be) the Supreme Court may make. Appeals under section 67E: supplementary 67F (1) This section applies if a court makes or varies a confiscation order pursuant to section 67E. (2) The court must— (a) have regard to any fine imposed on the defendant in respect of the offence (or any of the offences) concerned; (b) have regard to any order which falls within section 13(3) and has been made against the defendant in respect of the offence (or any of the offences) concerned, unless the order has already been taken into account by a court in deciding what is the free property held by the defendant for the purposes of section 9. (3) Subsections (4) to (9) apply if a court makes a confiscation order pursuant to section 67E. (4) If a court has already sentenced the defendant for the offence (or any of the offences) concerned, section 6 has effect as if the defendant’s particular criminal conduct included conduct which constitutes offences which the court has taken into consideration in deciding the defendant’s sentence for the offence or offences concerned. (5) If an order falling with subsection (6) has been made against the defendant in respect of the offence (or any of the offences) concerned the court must have regard to the order. (6) These orders fall within this subsection— (a) a compensation order under Chapter 2 of Part 7 of the Sentencing Code; (b) an order requiring payment of a surcharge under section 42 of the Sentencing Code; (c) an unlawful profit order under section 4 of the Prevention of Social Housing Fraud Act 2013; (d) a slavery and trafficking reparation order under section 8 of the Modern Slavery Act 2015. (7) Section 8(2) does not apply, and the rules applying instead are that the court must— (a) take account of conduct occurring before the relevant date; (b) take account of property obtained before that date; (c) take account of property obtained on or after that date if it was obtained as a result of or in connection with conduct occurring before that date. (8) In section 10— (a) the first and second assumptions do not apply with regard to property first held by the defendant on or after the relevant date; (b) the third assumption does not apply with regard to expenditure incurred by the defendant on or after that date; (c) the fourth assumption does not apply with regard to property obtained (or assumed to have been obtained) by the defendant on or after that date. (9) Section 26 applies as it applies in the circumstances mentioned in subsection (1) of that section. (10) For the purposes of this section, “the relevant date” is— (a) in a case where the Crown Court made a confiscation order which was quashed by the Court of Appeal, the date on which the Crown Court made the order; (b) in any other case, the date on which the Crown Court decided not to make a confiscation order. Appeals in relation to section 10A determinations 67G (1) If a court makes a determination under section 10A of the extent of the defendant’s interest in property, the following may appeal to the Court of Appeal in respect of the determination— (a) the prosecutor; (b) the defendant, if subsection (2) applies; (c) a person who the Court of Appeal believes is or may be a person holding an interest in the property, if subsection (2) applies. (2) This subsection applies if— (a) the defendant or (as the case may be) the person within subsection (1)(c) was not given a reasonable opportunity to make representations when the determination was made, or (b) it appears to the Court of Appeal to be arguable that giving effect to the determination would result in a serious risk of injustice to the defendant or that other person. (3) But there is no right of appeal for the defendant or a person within subsection (1)(c) if— (a) the Court of Appeal believes that an application under section 50 is to be made by the prosecutor for the appointment of a receiver, (b) such an application has been made but not yet determined, or (c) a receiver has been appointed under section 50. (4) On an appeal under this section the Court of Appeal may— (a) confirm the determination, or (b) make such order as it believes is appropriate. (5) An appeal lies to the Supreme Court from a decision of the Court of Appeal on an appeal under this section, at the instance of any person who was a party to the proceedings on the appeal. (6) On an appeal under subsection (5) the Supreme Court may— (a) confirm the decision of the Court of Appeal, or (b) make such order as it believes is appropriate. Appeals in relation to compliance orders 67H (1) If, on an application under section 13A(3)(b), the Crown Court decides not to make a compliance order, the prosecutor may appeal to the Court of Appeal against the decision. (2) If the Crown Court decides to make, discharge or vary a compliance order, the following persons may appeal to the Court of Appeal in respect of the decision— (a) the prosecutor; (b) the defendant; (c) any other person affected by the order. (3) On an appeal under subsection (1) or (2) the Court of Appeal may— (a) confirm the decision, or (b) make such order as it believes is appropriate. (4) An appeal lies to the Supreme Court from a decision of the Court of Appeal on an appeal under this section, at the instance of any person who was a party to the proceedings on the appeal. (5) On an appeal under subsection (4) the Supreme Court may— (a) confirm the decision of the Court of Appeal, or (b) make such order as it believes is appropriate. (6) In this section “compliance order” means an order made under section 13A. Appeals in relation to variations of confiscation order 67I (1) If the Crown Court makes an order under section 21, 22 or 23 varying a confiscation order, the prosecutor may appeal to the Court of Appeal in respect of the order. (2) For the defendant’s right of appeal where the Crown Court makes an order under section 21 or 22, see section 50(1)(cb) of the Criminal Appeal Act 1968 (the effect of which is that, for the purposes of the appeal rights conferred by that Act, any such order forms part of the defendant’s sentence). (3) On an appeal under subsection (1) the Court of Appeal— (a) may confirm, vary or quash the order concerned, and (b) if it quashes the order, may direct the Crown Court to proceed afresh under section 21, 22 or 23. (4) An appeal lies to the Supreme Court from a decision of the Court of Appeal on an appeal under this section, at the instance of the defendant or the prosecutor. (5) On an appeal from a decision of the Court of Appeal to confirm or vary the order concerned the Supreme Court may confirm, vary or quash the order. (6) On an appeal from a decision of the Court of Appeal to quash the order concerned the Supreme Court may— (a) confirm the decision of the Court of Appeal, or (b) direct the Crown Court to proceed afresh under section 21, 22 or 23 if it believes the decision was wrong. (7) In proceeding afresh pursuant to this section, the Crown Court must comply with any directions the Court of Appeal or (as the case may be) the Supreme Court may make. Appeals in relation to restraint orders 67J (1) If, on an application under section 42 for a restraint order, the Crown Court decides not to make one, the person who applied for the order may appeal to the Court of Appeal against the decision. (2) If an application is made under section 42(3) in relation to a restraint order or an order under section 41(7), the following may appeal to the Court of Appeal in respect of the Crown Court’s decision on the application— (a) the person who applied for the order; (b) any person affected by the order. (3) On an appeal under subsection (1) or (2) the Court of Appeal may— (a) confirm the decision, or (b) make such order as it believes is appropriate. (4) An appeal lies to the Supreme Court from a decision of the Court of Appeal on an appeal under this section, at the instance of any person who was a party to the proceedings before the Court of Appeal. (5) On an appeal under subsection (4) the Supreme Court may— (a) confirm the decision of the Court of Appeal, or (b) make such order as it believes is appropriate. Appeals in relation to management and enforcement receivers 67K (1) If, on an application for an order under any of sections 48 to 51 or 62, the Crown Court decides not to make one, the person who applied for the order may appeal to the Court of Appeal against the decision. (2) If the Crown Court makes an order under any of sections 48 to 51 or 62, any of the following may appeal to the Court of Appeal in respect of the order— (a) the person who applied for the order; (b) any person affected by the order; (c) if the order was made under section 62, the receiver. (3) The following may appeal to the Court of Appeal against a decision of the Crown Court on an application under section 63— (a) the person who applied for the order in respect of which the application was made; (b) any person affected by the court’s decision; (c) the receiver. (4) On an appeal under this section the Court of Appeal may— (a) confirm the decision, or (b) make such order as it believes is appropriate. (5) An appeal lies to the Supreme Court from a decision of the Court of Appeal on an appeal under this section, at the instance of any person who was a party to the proceedings before the Court of Appeal. (6) On an appeal under subsection (5) the Supreme Court may— (a) confirm the decision of the Court of Appeal, or (b) make such order as it believes is appropriate. Appeals in relation to realisation etc of seized property 67L (1) If the enforcing court decides not to make an order under section 67ZA(3), 67A(3) or 67AA(2), an appropriate officer may appeal against the decision to the applicable court. (2) If the enforcing court makes an order under 67ZA(3), 67A(3) or 67AA(2), a person affected by the order may appeal in respect of the order to the applicable court, but only if conditions 1 and 2 are met (and see subsection (5)). (3) Condition 1 is met if no determination under section 10A has been made in relation to the case. (4) Condition 2 is met if— (a) the person concerned was not given a reasonable opportunity to make representations when the confiscation order was made, or (b) it appears to the applicable court to be arguable that not hearing the appeal would result in a serious risk of injustice to that person. (5) A person holding the property to which the order under section 67ZA, 67A or (as the case may be) 67AA relates may not appeal under subsection (2) if there is a confiscation order made against them. (6) An appropriate officer may appeal to the applicable court against— (a) a decision by the enforcing court not to make a determination under section 67B; (b) a determination made by the enforcing court under that section. (7) On an appeal under this section to the Court of Appeal it may— (a) confirm the decision, or (b) make such order as it believes is appropriate. (8) An appeal lies to the Supreme Court from a decision of the Court of Appeal on an appeal under this section, at the instance of any person who was a party to the proceedings before the Court of Appeal. (9) On an appeal under subsection (8) the Supreme Court may— (a) confirm the decision of the Court of Appeal, or (b) make such order as it believes is appropriate. (10) In this section— “the applicable court” is— in a case where the enforcing court is a magistrates’ court, the Crown Court; in a case where the enforcing court is the Crown Court, the Court of Appeal; “appropriate officer” has the same meaning as in section 41A. (3) In section 44A (detention of property pending appeal), in subsections (1)(b) and (2)(b), for “43(3)(b)” substitute “67J(3)(b)”. (4) In section 46 (hearsay evidence), in subsection (3)(c), for “43 or 44” substitute “67J”. (5) In section 68 (applications and appeals), in subsection (1)(b), for “43, 44, 65 or 66” substitute “67J or 67K”. (6) In section 69 (powers of court and receiver etc), in subsection (1)(a), for “and sections 62 to 67D” substitute “, sections 62 to 67D and sections 67J to 67L”. (7) In section 85 (proceedings), in subsection (6)— (a) in paragraph (a), for “31(2)” substitute “67E(2)”; (b) in paragraph (b), for “31(2)” substitute “67E(2)”; (c) in paragraph (c)— (i) for “31(2)” substitute “67E(2)”; (ii) for “33” substitute “67E(6)”; (d) in paragraph (d)— (i) for “31(2)” substitute “67E(2)”; (ii) for “33” substitute “67E(6)”; (e) in paragraph (e)— (i) for “31(2)” substitute “67E(2)”; (ii) for “33” substitute “67E(6)”; (f) in paragraph (f), for “31(2)” substitute “67E(2)”; (g) in paragraph (g), for “33” substitute “67E(6)”. (8) In section 89 (procedure on appeal to the Court of Appeal), in subsection (4)— (a) in paragraph (za), for “31(4)” substitute “67G(1)”; (b) in paragraph (a), for “43(1) or (2)” substitute “67J(1) or (2)”; (c) in paragraph (b), for “65” substitute “67K(1) to (3)”. (9) Omit— (a) section 13B (appeals against compliance orders); (b) sections 31 to 33 (appeals against confiscation orders); (c) sections 43 and 44 (restraint orders: appeals); (d) sections 65 and 66 (receivers: appeals); (e) section 67C (orders in relation to seized property: appeals). (10) In section 50 of the Criminal Appeal Act 1968 (meaning of sentence)— (a) in subsection (1), in paragraph (ca), omit the words from “(but” to the end; (b) after subsection (3) insert— (4) A determination made under section 10A of the Proceeds of Crime Act 2002 is not a sentence for the purposes of this Act (see section 67G of that Act for rights of appeal in relation to such a determination). (5) A compliance order made under section 13A of the Proceeds of Crime Act 2002 is not a sentence for the purposes of this Act (see section 67H of that Act for rights of appeal in relation to such an order). Part 12 Consequential and related amendments Courts Act 2003 (c. 39) 32 In the Courts Act 2003, in Schedule 8 (minor and consequential amendments), omit paragraph 406. Constitutional Reform Act 2005 (c. 4) 33 In the Constitutional Reform Act 2005, in Schedule 9 (amendments relating to jurisdiction of the Supreme Court), omit paragraph 77(2) and (3). Serious Crime Act 2007 (c. 27) 34 In the Serious Crime Act 2007, in Schedule 8 (abolition of Assets Recovery Agency and its Director)— (a) omit paragraph 4; (b) omit paragraphs 16 and 17; (c) omit paragraph 19; (d) omit paragraph 32. Prevention of Social Housing Fraud Act 2013 (c. 3) 35 In the Prevention of Social Housing Fraud Act 2013, in the Schedule (consequential amendments)— (a) omit paragraphs 15 and 16; (b) omit paragraph 17(3); (c) omit paragraph 18(3); (d) omit paragraphs 19 to 21. Crime and Courts Act 2013 (c. 22) 36 Omit sections 46 and 47 of the Crime and Courts Act 2013 (restraint orders and legal aid). Serious Crime Act 2015 (c. 9) 37 The Serious Crime Act 2015 is amended as follows. 38 Omit section 3 (appeals in relation to confiscation orders). 39 In section 6 (confiscation and victim surcharge orders), omit subsections (4) and (5). 40 In section 10 (default sentences), omit subsection (1). 41 In Schedule 4 (minor and consequential amendments)— (a) omit paragraphs 21 and 22; (b) omit paragraph 23(3); (c) omit paragraph 24(3); (d) omit paragraphs 25 to 30. Modern Slavery Act 2015 (c. 30) 42 The Modern Slavery Act 2015 is amended as follows. 43 In section 10 (supplementary provision about slavery and trafficking reparation orders)— (a) in subsection (6)— (i) for “24” substitute “24A”; (ii) after “the court” insert “provisionally discharges or (as the case may be)”; (b) in subsection (8), in the words before paragraph (a), for “31” substitute “67E(1) or (2) or 67G(1)”; (c) in subsection (9), in the words before paragraph (a), for “33” substitute “67E(6) or 67G(5)”. 44 In Schedule 5 (minor and consequential amendments), omit paragraphs 16 to 19. Criminal Finances Act 2017 (c. 22) 45 In section 32 of the Criminal Finances Act 2017 (reconsideration of discharged orders), omit subsections (2) and (3). Sentencing Act 2020 (c. 17) 46 The Sentencing Act 2020 is amended as follows. 47 In section 42 (court’s duty to order payment of surcharge), in subsection (2)(b), for the words from “15” to the end substitute “15A of the Proceeds of Crime Act 2002 (effect on duty in subsection (1) where court sentences before confiscation proceedings)”. 48 In section 46 (criminal courts charge duty), in subsection (1), omit the words from “But” to the end. 49 In section 125 (exercise of court’s powers to impose fine and fix amount), in subsection (6)(b), for the words from “15” to the end substitute “15A (where court sentences before confiscation proceedings)”. 50 In section 135 (making a compensation order), in subsection (6)(b), for the words from “15” to the end substitute “15A (where court sentences before confiscation proceedings)”. 51 In section 155 (exercise of power to make a deprivation order), in subsection (3)(b), for the words from “15” to the end substitute “15A (where court sentences before confiscation proceedings)”. 52 In section 161E(5) (making an income reduction order) (as inserted by section 3 of the Sentencing Act 2026), for paragraph (b) substitute— (b) section 15A (where court sentences before confiscation proceedings). 53 (1) Schedule 22 (prospective amendments of the Sentencing Code and related legislation) is amended as follows. (2) After Part 7 insert— Part 7A Amendments of other Acts consequential on prospective abolition of detention in default of payment of fines etc Proceeds of Crime Act 2002 (c. 29) 100A (1) The Proceeds of Crime Act 2002 is amended as follows. (2) In section 35A (default term of imprisonment or detention)— (a) in subsection (2), for paragraphs (a) and (b) substitute “of imprisonment”; (b) in subsection (4), in the opening words, omit “, or detained,”; (c) in the heading, omit “or detention”. (3) In section 35J (enforcement by magistrates’ court), in subsection (4), omit the words from “, or detention” to “Act 2000,”. (4) In section 35M (warrant of commitment issued by Crown Court), in subsection (3), omit the words from “, or detention” to “Act 2000,”. (3) In Part 8 (amendments of other Acts consequential on prospective change to age limit for imprisonment) at the end insert— Proceeds of Crime Act 2002 (c. 29) 103 In section 35A of the Proceeds of Crime Act 2002 (default term of imprisonment or detention), in subsection (4)(c), omit “, custody for life or detention in a young offender institution”. 54 In Schedule 24 (consequential amendments)— (a) omit paragraphs 183 and 184; (b) omit paragraph 185(3); (c) omit paragraph 186(3); (d) omit paragraphs 187 and 188; (e) omit paragraphs 190 to 192.