Halfway Release on POCA Default Sentences Explained

Halfway Release on POCA Default Sentences: What the Law Actually Says

Default sentences in Part 2 POCA confiscation cases are widely misunderstood. Two assumptions in particular persist:

• that default sentences must always be served in full
• that default terms for mid-range confiscation orders remain relatively short

Neither assumption reflects the current legal position.

This article explains how section 35 of the Proceeds of Crime Act 2002 leads to automatic halfway release on most confiscation default sentences, why that change was introduced in 2015, and why the modern regime can still produce longer periods in custody than before.

What is a default sentence under POCA?

A default sentence is a term of imprisonment imposed in default of payment of a confiscation order. It is not punishment for the substantive offence and does not extinguish the confiscation debt.

Even after a default term has been served:

• the confiscation order remains enforceable
• interest continues to accrue
• enforcement action can resume

Default imprisonment is therefore an enforcement mechanism, not an alternative outcome.

Section 35 POCA: enforcement “as fines”

Section 35 POCA is headed “Enforcement as fines”, and that drafting choice is central to how default sentences operate.

The section applies the court’s fine-enforcement powers to confiscation orders as if the amount ordered were a fine imposed by the court. Once default custody is engaged, confiscation defaulters are therefore brought within the same enforcement framework that applies to fine defaulters.

POCA sets the power to impose a default term and its length. It does not govern how much of that term is actually served.

Default term lengths under the current law

Since the Serious Crime Act 2015, the default-term table for confiscation orders appears directly within section 35(2A) POCA.

The current bands are:

• £10,000 or less – 6 months
• More than £10,000 but no more than £500,000 – 5 years
• More than £500,000 but no more than £1 million – 7 years
• More than £1 million – 14 years

These are confiscation-specific maxima and represent a substantial increase on the tariff that applied before 2015.

An unpaid confiscation order of £105,000, for example, now sits within the “more than £10,000 but no more than £500,000” band, exposing the defendant to a default term of up to five years.

Where release rules come from

The question of whether a default sentence is served in full is not answered by POCA.

Once a person is imprisoned in default, release is governed by the Criminal Justice Act 2003, which sets out the automatic release provisions for prisoners, including those imprisoned in default of payment. The relevant provision is section 258, which applies to fine defaulters and related categories.

Because section 35 POCA enforces confiscation orders as fines, confiscation default sentences are routed into this release framework.

The £10 million exception

The Serious Crime Act 2015 amended section 258 of the Criminal Justice Act 2003 to deal expressly with confiscation cases.

The effect of that amendment is that automatic halfway release does not apply where the confiscation order is for more than £10 million.

In practical terms:

• confiscation orders under £10 million are generally subject to automatic release at the halfway point
• confiscation orders over £10 million require the default term to be served in full

This is the statutory basis for halfway release in most POCA default cases.

Why the post-2015 regime can be harsher overall

The introduction of halfway release is often described as a softening of the law. That description is incomplete.

Before the Serious Crime Act 2015, default terms for mid-range confiscation orders were typically measured in months, and they were served in full. A confiscation order around £100,000 would commonly attract a 12-month default term, all of which would be served if payment was not made.

The 2015 reforms changed two things at the same time:

• they brought most confiscation default sentences (those under £10 million) within the halfway-release framework
• they dramatically increased default terms, introducing the steep bands now found in section 35(2A) POCA

The result is that the starting point is now much higher. A five-year default term served to the halfway point still results in 2.5 years in custody, which is significantly more severe than serving 100 percent of a 12-month default term under the pre-2015 regime.

Focusing solely on halfway release therefore misses the real impact of the post-2015 changes.

Common misconceptions

Three misconceptions arise repeatedly in POCA cases:

• default sentences must always be served in full
• default terms for mid-range cases remain short
• halfway release makes default imprisonment relatively mild

None of these reflect the modern statutory framework.

Why this matters at the confiscation stage

Default sentences are often treated as a distant enforcement issue. In reality, they are shaped by decisions taken during confiscation proceedings.

Overstated available-amount figures, unsupported hidden-asset allegations, and unrealistic assumptions about liquidity can translate into years of enforcement pressure and substantial custody exposure later on.

Understanding how section 35 POCA interacts with the wider sentencing and release framework is therefore essential when advising on confiscation outcomes.