Proceeds of Crime Act 2002: HMRC’s view

According to HMRC’s latest estimates of the tax gap for the 2020-21 tax year criminal attacks cost the government an estimated £5.2bn in expected revenues. This is the result of a dishonest minority who fraudulently claim money they are not entitled to which in turn means the country loses out on significant tax revenues that are intended to support essential programmes and services such as healthcare and education. But one of the tools available to law enforcement agencies introduced 21 years ago this month continues to ensure that HMRC can tackle such behaviours.

The Proceeds of Crime Act (POCA) 2002 was a landmark moment in the UK’s asset recovery regime. Before 2002 asset recovery powers were set out in several different acts of parliament but the introduction of POCA consolidated what had previously been a fragmented legislative landscape.

The government at the time...