How Interest Accrues on Unpaid POCA Orders
POCA Section 12: Interest on Unpaid Confiscation Order Sums
When a confiscation order is made under the Proceeds of Crime Act 2002 (POCA), payment terms are set by the court. But what happens if the defendant fails to pay on time? That’s where section 12 of POCA 2002 comes in.
This provision imposes interest on any unpaid amount due under the confiscation order, potentially inflating the debt significantly. Understanding how interest works under section 12 is crucial for both legal professionals and defendants.
What Does Section 12 Say?
In summary, section 12 provides that:
If any amount required to be paid under a confiscation order is not paid when due, interest accrues on the unpaid amount.
The interest rate is the statutory rate under section 17 of the Judgments Act 1838, currently set at 8% per annum – a high rate by today’s standards.
Interest continues to accrue for as long as the sum remains unpaid.
Importantly, interest is treated as part of the total amount payable under the confiscation order – not just a civil liability.
Exceptions to Interest Accrual
There is one limited exception, found in section 12(3). If:
The defendant has made an application under section 11(4) to extend the time for payment,
That application is still pending, and
The standard six-month period for payment has not expired,
then interest will not accrue on the amount covered by the extension application. However, this carve-out is narrow and time-sensitive.
Practical Consequences
In most cases, the court allows a maximum of six months for payment of a confiscation order under section 11 POCA 2002. After that, if the full amount (including any interest accrued) hasn’t been paid, the defendant is liable to serve a default sentence – a custodial penalty proportionate to the amount outstanding.
Because of section 12:
Interest begins to accrue the day after the deadline expires (unless a section 11(4) extension is pending).
At the current 8% statutory interest rate, even a short delay can add thousands to the amount owed.
The added interest is not just a civil burden – it increases the total enforceable amount, and the defendant must pay it to avoid default sentence enforcement.
Although the default sentence is typically triggered soon after the payment deadline, interest can still accrue in cases where:
Enforcement is stayed due to appeals, unresolved asset tracing, or external legal complications.
The prosecution delays enforcement while awaiting the realisation of assets or changes in asset values.
The defendant absconds or has no identifiable realisable assets – in which case interest continues indefinitely until payment is made or enforcement resumes.
So while most orders are enforced within six months, interest can still mount over time, especially in long-running or dormant enforcement cases.
Relevance for Defence Teams
For criminal defence solicitors and forensic experts, section 12 has several key implications:
Monitor payment dates carefully. Even short delays can start the interest clock.
If payment within the six-month window is unlikely, apply under section 11(4) for more time and ensure that application is made before the deadline.
Use expert evidence to challenge the available amount or demonstrate that the defendant lacks realisable assets, especially if the prosecution seeks to enforce interest-inclusive totals.
Conclusion
Section 12 of POCA 2002 may seem like a simple interest clause, but in confiscation proceedings, it carries serious consequences. It turns a delayed payment into a growing liability, and the added interest becomes part of the enforceable debt – potentially sending a defendant to prison even years after conviction.
Professionals advising on confiscation orders must pay close attention to section 12 to safeguard clients from unintended consequences. Accurate valuation of realisable assets, timely applications for extensions, and clear communication with the court can all make a significant difference.
