Proceeds of Crime Act 2002 (c. 29)

(The document as of February, 2008)

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(3) An order under this section may be made so as to apply to property, or a disposal of property, only in prescribed circumstances; and the circumstances may relate to the property or disposal itself or to a person who holds or has held the property or to any other matter.

(4) In this section, an order means an order made by the Secretary of State after consultation with the Scottish Ministers, and prescribed means prescribed by the order.

310 Granting interests

(1) If a person grants an interest in his recoverable property, the question whether the interest is also recoverable is to be determined in the same manner as it is on any other disposal of recoverable property.

(2) Accordingly, on his granting an interest in the property ("the property in question")--

(a) where the property in question is property obtained through unlawful conduct, the interest is also to be treated as obtained through that conduct,

(b) where the property in question represents in his hands property obtained through unlawful conduct, the interest is also to be treated as representing in his hands the property so obtained.

Insolvency

311 Insolvency

(1) Proceedings for a recovery order may not be taken or continued in respect of property to which subsection (3) applies unless the appropriate court gives leave and the proceedings are taken or (as the case may be) continued in accordance with any terms imposed by that court.

(2) An application for an order for the further detention of any cash to which subsection (3) applies may not be made under section 295 unless the appropriate court gives leave.

(3) This subsection applies to recoverable property, or property associated with it, if--

(a) it is an asset of a company being wound up in pursuance of a resolution for voluntary winding up,

(b) it is an asset of a company and a voluntary arrangement under Part 1 of the 1986 Act, or Part 2 of the 1989 Order, has effect in relation to the company,

(c) an order under section 2 of the 1985 Act, section 286 of the 1986 Act or Article 259 of the 1989 Order (appointment of interim trustee or interim receiver) has effect in relation to the property,

(d) it is an asset comprised in the estate of an individual who has been adjudged bankrupt or, in relation to Scotland, of a person whose estate has been sequestrated,

(e) it is an asset of an individual and a voluntary arrangement under Part 8 of the 1986 Act, or Part 8 of the 1989 Order, has effect in relation to him, or

(f) in relation to Scotland, it is property comprised in the estate of a person who has granted a trust deed within the meaning of the 1985 Act.

(4) An application under this section, or under any provision of the 1986 Act or the 1989 Order, for leave to take proceedings for a recovery order may be made without notice to any person.

(5) Subsection (4) does not affect any requirement for notice of an application to be given to any person acting as an insolvency practitioner or to the official receiver (whether or not acting as an insolvency practitioner).

(6) References to the provisions of the 1986 Act in sections 420 and 421 of that Act, or to the provisions of the 1989 Order in Articles 364 or 365 of that Order, (insolvent partnerships and estates of deceased persons) include subsections (1) to (3) above.

(7) In this section--

(a) the 1985 Act means the Bankruptcy (Scotland) Act 1985 (c. 66),

(b) the 1986 Act means the Insolvency Act 1986 (c. 45),

and in subsection (8) "the applicable enactment" means whichever enactment mentioned in paragraphs (a) to (c) is relevant to the resolution, arrangement, order or trust deed mentioned in subsection (3).

(8) In this section--

(a) an asset means any property within the meaning of the applicable enactment or, where the 1985 Act is the applicable enactment, any property comprised in an estate to which the 1985 Act applies,

(b) the appropriate court means the court which, in relation to the resolution, arrangement, order or trust deed mentioned in subsection (3), is the court for the purposes of the applicable enactment or, in relation to Northern Ireland, the High Court,

(d) other expressions used in this section and in the applicable enactment have the same meaning as in that enactment.

Delegation of enforcement functions

312 Performance of functions of Scottish Ministers by constables in Scotland

(1) In Scotland, a constable engaged in temporary service with the Scottish Ministers in connection with their functions under this Part may perform functions, other than those specified in subsection (2), on behalf of the Scottish Ministers.

(2) The specified functions are the functions conferred on the Scottish Ministers by--

(a) sections 244(1) and (2) and 256(1) and (7) (proceedings in the Court of Session),

(b) section 267(2) (trustee for civil recovery),

(d) section 275(3) (pension schemes),

(e) section 282(1) (exemptions),

(f) section 283(5) and (8) (compensation),

(g) section 287(2) (financial threshold),

(h) section 293(1) (code of practice),

(i) section 298(1) (forfeiture),

(j) section 303(1) (minimum amount).

313 Restriction on performance of Director's functions by police

(1) In spite of section 1(6), nothing which the Director is authorised or required to do for the purposes of this Part may be done by--

(a) a member of a police force,

(b) a member of the Police Service of Northern Ireland,

(c) a person appointed as a police member of the National Criminal Intelligence Service under section 9(1)(b) of the Police Act 1997 (c. 50),

(d) a person appointed as a police member of the National Crime Squad under section 55(1)(b) of that Act.

(2) In this section--

(a) "member of a police force" has the same meaning as in the Police Act 1996 (c. 16) and includes a person who would be a member of a police force but for section 97(3) of that Act (police officers engaged on service outside their force),

(b) "member of the Police Service of Northern Ireland" includes a person who would be a member of the Police Service of Northern Ireland but for section 27(3) of the Police (Northern Ireland) Act 1998 (c. 32) (members of that service engaged on other police service).

Interpretation

314 Obtaining and disposing of property

(1) References to a person disposing of his property include a reference--

(a) to his disposing of a part of it, or

(b) to his granting an interest in it,

(or to both); and references to the property disposed of are to any property obtained on the disposal.

(2) A person who makes a payment to another is to be treated as making a disposal of his property to the other, whatever form the payment takes.

(3) Where a person's property passes to another under a will or intestacy or by operation of law, it is to be treated as disposed of by him to the other.

(4) A person is only to be treated as having obtained his property for value in a case where he gave unexecuted consideration if the consideration has become executed consideration.

315 Northern Ireland courts

In relation to the practice and procedure of courts in Northern Ireland, expressions used in this Part are to be read in accordance with rules of court.

316 General interpretation

(1) In this Part--

"associated property" has the meaning given by section 245,
"cash" has the meaning given by section 289(6) or (7),
"constable", in relation to Northern Ireland, means a police officer within the meaning of the Police (Northern Ireland) Act 2000 (c. 32),
"country" includes territory,
"the court" (except in sections 253(2) and (3) and 262(2) and (3) and Chapter 3) means the High Court or (in relation to proceedings in Scotland) the Court of Session,
"dealing" with property includes disposing of it, taking possession of it or removing it from the United Kingdom,
"enforcement authority"--
(a)
in relation to England and Wales and Northern Ireland, means the Director,
(b)
in relation to Scotland, means the Scottish Ministers,
"excepted joint owner" has the meaning given by section 270(4),
"interest", in relation to land--
(a)
in the case of land in England and Wales or Northern Ireland, means any legal estate and any equitable interest or power,
(b)
in the case of land in Scotland, means any estate, interest, servitude or other heritable right in or over land, including a heritable security,
"interest", in relation to property other than land, includes any right (including a right to possession of the property),
"interim administration order" has the meaning given by section 256(2),
"interim receiving order" has the meaning given by section 246(2),
"the minimum amount" (in Chapter 3) has the meaning given by section 303,
"part", in relation to property, includes a portion,
"premises" has the same meaning as in the Police and Criminal Evidence Act 1984 (c. 60),
"property obtained through unlawful conduct" has the meaning given by section 242,
"recoverable property" is to be read in accordance with sections 304 to 310,
"recovery order" means an order made under section 266,
"respondent" means--
(a)
where proceedings are brought by the enforcement authority by virtue of Chapter 2, the person against whom the proceedings are brought,
(b)
where no such proceedings have been brought but the enforcement authority has applied for an interim receiving order or interim administration order, the person against whom he intends to bring such proceedings,
"share", in relation to an excepted joint owner, has the meaning given by section 270(4),
"unlawful conduct" has the meaning given by section 241,
"value" means market value.

(2) The following provisions apply for the purposes of this Part.

(3) For the purpose of deciding whether or not property was recoverable at any time (including times before commencement), it is to be assumed that this Part was in force at that and any other relevant time.

(4) Property is all property wherever situated and includes--

(a) money,

(b) all forms of property, real or personal, heritable or moveable,

(5) Any reference to a person's property (whether expressed as a reference to the property he holds or otherwise) is to be read as follows.

(6) In relation to land, it is a reference to any interest which he holds in the land.

(7) In relation to property other than land, it is a reference--

(a) to the property (if it belongs to him), or

(b) to any other interest which he holds in the property.

(8) References to the satisfaction of the enforcement authority's right to recover property obtained through unlawful conduct are to be read in accordance with section 279.

(9) Proceedings against any person for an offence are concluded when--

(a) the person is convicted or acquitted,

(b) the prosecution is discontinued or, in Scotland, the trial diet is deserted simpliciter, or

Part 6 Revenue Functions

General functions

317 Director's general Revenue functions

(1) For the purposes of this section the qualifying condition is that the Director has reasonable grounds to suspect that--

(a) income arising or a gain accruing to a person in respect of a chargeable period is chargeable to income tax or is a chargeable gain (as the case may be) and arises or accrues as a result of the person's or another's criminal conduct (whether wholly or partly and whether directly or indirectly), or

(b) a company is chargeable to corporation tax on its profits arising in respect of a chargeable period and the profits arise as a result of the company's or another person's criminal conduct (whether wholly or partly and whether directly or indirectly).

(2) If the qualifying condition is satisfied the Director may serve on the Commissioners of Inland Revenue (the Board) a notice which--

(a) specifies the person or the company (as the case may be) and the period, and

(b) states that the Director intends to carry out, in relation to the person or the company (as the case may be) and in respect of the period, such of the general Revenue functions as are specified in the notice.

(3) Service of a notice under subsection (2) vests in the Director, in relation to the person or the company (as the case may be) and in respect of the period, such of the general Revenue functions as are specified in the notice; but this is subject to section 318.

(4) The Director--

(a) may at any time serve on the Board a notice of withdrawal of the notice under subsection (2);

(b) must serve such a notice of withdrawal on the Board if the qualifying condition ceases to be satisfied.

(5) A notice under subsection (2) and a notice of withdrawal under subsection (4) may be in respect of one or more periods.

(6) Service of a notice under subsection (4) divests the Director of the functions concerned in relation to the person or the company (as the case may be) and in respect of the period or periods specified in the notice.

(7) The vesting of a function in the Director under this section does not divest the Board or an officer of the Board of the function.

(8) If--

(a) apart from this section the Board's authorisation would be required for the exercise of a function, and

(b) the function is vested in the Director under this section,

the authorisation is not required in relation to the function as so vested.

(9) It is immaterial whether a chargeable period or any part of it falls before or after the passing of this Act.

318 Revenue functions regarding employment

(1) Subsection (2) applies if--

(a) the Director serves a notice or notices under section 317(2) in relation to a company and in respect of a period or periods, and

(b) the company is an employer.

(2) The general Revenue functions vested in the Director do not include functions relating to any requirement which--

(a) is imposed on the company in its capacity as employer, and

(b) relates to a year of assessment which does not fall wholly within the period or periods.

(3) Subsection (4) applies if--

(a) the Director serves a notice or notices under section 317(2) in relation to an individual and in respect of a year or years of assessment, and

(b) the individual is a self-employed earner.

(4) The general Revenue functions vested in the Director do not include functions relating to any liability to pay Class 2 contributions in respect of a period which does not fall wholly within the year or years of assessment.

(5) In this section in its application to Great Britain--

(a) "self-employed earner" has the meaning given by section 2(1)(b) of the Social Security Contributions and Benefits Act 1992 (c. 4);

(b) "Class 2 contributions" must be construed in accordance with section 1(2)(c) of that Act.

(6) In this section in its application to Northern Ireland--

(a) "self-employed earner" has the meaning given by section 2(1)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7);

(b) "Class 2 contributions" must be construed in accordance with section 1(2)(c) of that Act.

319 Source of income

(1) For the purpose of the exercise by the Director of any function vested in him by virtue of this Part it is immaterial that he cannot identify a source for any income.

(2) An assessment made by the Director under section 29 of the Taxes Management Act 1970 (c. 9) (assessment where loss of tax discovered) in respect of income charged to tax under Case 6 of Schedule D must not be reduced or quashed only because it does not specify (to any extent) the source of the income.

(3) If the Director serves on the Board a notice of withdrawal under section 317(4), any assessment made by him under section 29 of the Taxes Management Act 1970 is invalid to the extent that it does not specify a source for the income.

(4) Subsections (2) and (3) apply in respect of years of assessment whenever occurring.

320 Appeals

(1) An appeal in respect of the exercise by the Director of general Revenue functions shall be to the Special Commissioners.

(2) The Presiding Special Commissioner may nominate one or more assessors to assist the Special Commissioners in any appeal to be heard by them in respect of the exercise by the Director of any of his Revenue functions.

(3) An assessor nominated under subsection (2)--

(a) must have special knowledge and experience of the matter to which the appeal relates, and

(b) must be selected from a panel of persons appointed for the purposes of this section by the Lord Chancellor after consultation with the Scottish Ministers.

(4) Regulations made under section 56B of the Taxes Management Act 1970 may include provision as to the manner in which an assessor nominated under subsection (2) is to assist the Special Commissioners.

(5) The remuneration of an assessor nominated under subsection (2) must be paid by the Lord Chancellor and must be at such rate as he decides.

Inheritance tax functions

321 Director's functions: transfers of value

(1) For the purposes of this section the qualifying condition is that the Director has reasonable grounds to suspect that--

(a) there has been a transfer of value within the meaning of the Inheritance Tax Act 1984 (c. 51), and

(b) the value transferred by it is attributable (in whole or part) to criminal property.

(2) If the qualifying condition is satisfied the Director may serve on the Board a notice which--

(a) specifies the transfer of value, and

(b) states that the Director intends to carry out the Revenue inheritance tax functions in relation to the transfer.

(3) Service of a notice under subsection (2) vests in the Director the Revenue inheritance tax functions in relation to the transfer.

(4) The Director--

(a) may at any time serve on the Board a notice of withdrawal of the notice under subsection (2);

(b) must serve such a notice of withdrawal on the Board if the qualifying condition ceases to be satisfied.

(5) Service of a notice under subsection (4) divests the Director of the Revenue inheritance tax functions in relation to the transfer.

(6) The vesting of a function in the Director under this section does not divest the Board or an officer of the Board of the function.

(7) It is immaterial whether a transfer of value is suspected to have occurred before or after the passing of this Act.

322 Director's functions: certain settlements

(1) For the purposes of this section the qualifying condition is that the Director has reasonable grounds to suspect that--

(a) all or part of the property comprised in a settlement is relevant property for the purposes of Chapter 3 of Part 3 of the Inheritance Tax Act 1984 (settlements without interest in possession), and

(b) the relevant property is (in whole or part) criminal property.

(2) If the qualifying condition is satisfied the Director may serve on the Board a notice which--

(a) specifies the settlement concerned,

(b) states that the Director intends to carry out the Revenue inheritance tax functions in relation to the settlement, and

(3) Service of a notice under subsection (2) vests in the Director the Revenue inheritance tax functions in relation to the settlement for the period.

(4) The Director--

(a) may at any time serve on the Board a notice of withdrawal of the notice under subsection (2);

(b) must serve such a notice of withdrawal on the Board if the qualifying condition ceases to be satisfied.

(5) Service of a notice under subsection (4) divests the Director of the Revenue inheritance tax functions in relation to the settlement for the period.

(6) The vesting of a function in the Director under this section does not divest the Board or an officer of the Board of the function.

(7) It is immaterial whether the settlement is commenced or a charge to tax arises or a period or any part of it falls before or after the passing of this Act.

General

323 Functions

(1) The general Revenue functions are such of the functions vested in the Board or in an officer of the Board as relate to any of the following matters--

(a) income tax;

(b) capital gains tax;

(d) national insurance contributions;

(e) statutory sick pay;

(f) statutory maternity pay;

(g) statutory paternity pay;

(h) statutory adoption pay;

(i) student loans.

(2) The Revenue inheritance tax functions are such functions vested in the Board or in an officer of the Board as relate to inheritance tax.

(3) But the general Revenue functions and the Revenue inheritance tax functions do not include any of the following functions--

(a) functions relating to the making of subordinate legislation (within the meaning given by section 21(1) of the Interpretation Act 1978 (c. 30));

(b) the function of the prosecution of offences;

(c) the function of authorising an officer for the purposes of section 20BA of the Taxes Management Act 1970 (c. 9) (orders for delivery of documents);

(d) the function of giving information under that section;

(e) the function of approving an officer's application for the purposes of section 20C of the Taxes Management Act 1970 (warrant to enter and search premises);

(f) the function of applying under that section.

(4) For the purposes of this section in its application to Great Britain--

(a) national insurance contributions are contributions payable under Part 1 of the Social Security Contributions and Benefits Act 1992 (c. 4);

(b) "statutory sick pay" must be construed in accordance with section 151(1) of that Act;

(d) "statutory paternity pay" must be construed in accordance with section 171ZA of that Act;

(e) "statutory adoption pay" must be construed in accordance with section 171ZL of that Act;

(f) "student loans" must be construed in accordance with the Education (Student Loans) (Repayment) Regulations 2000 (S.I. 2000/944).

(5) For the purposes of this section in its application to Northern Ireland--

(a) national insurance contributions are contributions payable under Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7);

(b) "statutory sick pay" must be construed in accordance with section 147(1) of that Act;

(d) "statutory paternity pay" must be construed in accordance with any Northern Ireland legislation which corresponds to Part 12ZA of the Social Security Contributions and Benefits Act 1992;

(e) "statutory adoption pay" must be construed in accordance with any Northern Ireland legislation which corresponds to Part 12ZB of that Act;

(f) "student loans" must be construed in accordance with the Education (Student Loans) (Repayment) Regulations (Northern Ireland) 2000 (S.R. 2000/121).

324 Exercise of Revenue functions

(1) This section applies in relation to the exercise by the Director of--

(a) general Revenue functions;

(b) Revenue inheritance tax functions.

(2) Paragraph (b) of section 1(6) does not apply.

(3) The Director must apply--

(a) any interpretation of the law which has been published by the Board;

(b) any concession which has been published by the Board and which is available generally to any person falling within its terms.

(4) The Director must also take account of any material published by the Board which does not fall within subsection (3).

(5) The Director must provide the Board with such documents and information as they consider appropriate.

(6) "Concession" includes any practice, interpretation or other statement in the nature of a concession.

325 Declarations

(1) As soon as practicable after the appointment of a person as the Director he must make a declaration in the form set out in Schedule 8 before a member of the Board.

(2) Every member of the staff of the Agency who is authorised under section 1(6)(a) to carry out any of the functions of the Director under this Part must, as soon as practicable after being so authorised, make a declaration in the form set out in Schedule 8 before a person nominated by the Director for the purpose.

326 Interpretation

(1) Criminal conduct is conduct which--

(a) constitutes an offence in any part of the United Kingdom, or

(b) would constitute an offence in any part of the United Kingdom if it occurred there.

(2) But criminal conduct does not include conduct constituting an offence relating to a matter under the care and management of the Board.

(3) In applying subsection (1) it is immaterial whether conduct occurred before or after the passing of this Act.

(4) Property is criminal property if it constitutes a person's benefit from criminal conduct or it represents such a benefit (in whole or part and whether directly or indirectly); and it is immaterial--

(a) who carried out the conduct;

(b) who benefited from it.

(5) A person benefits from conduct if he obtains property as a result of or in connection with the conduct.

(6) If a person obtains a pecuniary advantage as a result of or in connection with conduct, he is to be taken to obtain as a result of or in connection with the conduct a sum of money equal to the value of the pecuniary advantage.

(7) References to property or a pecuniary advantage obtained in connection with conduct include references to property or a pecuniary advantage obtained in both that connection and some other.

(8) If a person benefits from conduct his benefit is the property obtained as a result of or in connection with the conduct.

(9) Property is all property wherever situated and includes--

(a) money;

(b) all forms of property, real or personal, heritable or moveable;

(10) The following rules apply in relation to property--

(a) property is obtained by a person if he obtains an interest in it;

(b) references to an interest, in relation to land in England and Wales or Northern Ireland, are to any legal estate or equitable interest or power;

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