Confiscation Order Interest | Kangs POCA Solicitors


Interest is payable upon all amounts outstanding under Confiscation Orders once the time allowed for payment has expired.

Given that the current rate of interest is 8% per annum, this can substantially increase the amount payable under an Order, especially where realization is complicated in a situation where, for example, the asset is a financial interest in the family home or a Restraint Order restricts disposal of any asset.

John Veale of Kangs Solicitors outlines some considerations.

The Law | Kangs Asset Forfeiture Solicitors

  • Section 11 of the Proceeds of Crime Act 2002 (POCA) allowed an initial six months for payment which, in exceptional circumstances, could be increased to a maximum of twelve months upon application to the Court.
  • The Serious Crime Act 2015, reduced the time allowed for payment under POCA to three months which, in exceptional circumstances, may be increased to a maximum of six months upon application to the Court.

Sentence in Default | Kangs POCA Advisory Solicitors

  • Failure to satisfy the amount due under a Confiscation Order may result in an extension to a current term of imprisonment or a further term being imposed.
  • Normally, any payment made in reduction of the Order would result in any additional sentence imposed being reduced proportionally.
  • A problem occurred where the interest which had accrued negated the effect of any payments made with the result that the debt had not reduced or, indeed, may have increased above the amount of the original Order.
  • In the case of R (Gibson) v Secretary of State for Justice [2018] UKSC2 it was stated that where payments have been made, the amount of the Confiscation Order is reduced by the value of the sums paid and the sentence in default is reduced accordingly.
  • Additionally, it was held that a default sentence can no longer be activated where the remaining debt due under the Confiscation Order is less than the total amount of interest that has accrued.

How Can We Help? | Kangs Confiscation Law Team

At Kangs Solicitors we have a notable record of having dealt with some of the most complex and high value Confiscation/Restraint Orders that have arisen in the country.

Our team is led by Hamraj Kang who is recognised as a leading expert in the field. He is one of only two solicitors nationally to be ranked as a ‘star individual’ for three consecutive years in the legal directory Chambers & Partners.

Other members of the team are ranked in the Legal 500 and also ranked in Chambers & Partners.

If you are in need of expert help and advice please do not hesitate to contact our team through:

Hamraj Kang
07976 258171 | 020 7936 6396 | 0121 449 9888

John Veale
0121 449 9888 | 020 7936 6396 | 07989 521210

Tim Thompson
020 7936 6396 | 0121 449 9888

News insights, Serious Fraud, Services
A former Labour MP, Jared O’Mara, has received an immediate custodial sentence of four years having been found guilty, following his trial, of six counts of fraud relating to false expenses claims for work that he never carried out in respect of jobs that did not even exist. For further Press details please follow the […]
Criminal Litigation, News insights, Services
Kangs Solicitors has recently successfully defended a client facing an allegation of assault occasioning actual bodily harm arising from an incident forced upon him whilst he was simply conducting his  business, running a restaurant in London’s West End, when confronted with an unsavoury situation. Kangs Solicitors was instructed from the onset attending the interview under caution at Charing […]
Insolvency, News insights, Services
Kangs Solicitors has been instructed to defend claims against our client alleging breaches of Section 212 and 213 of the Insolvency Act 1986. The claims are being brought by the joint liquidators of our client’s company on the basis that our client allegedly knew that he and his company were participating in ‘Missing Trader Intra- Community’ Fraud’ […]

Get in touch

Need legal assistance? Contact our experienced team for prompt and professional support.