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<p>Confiscation orders are the principal means by which the government carries out
its policy to deprive criminals of the proceeds of their crime. They are used with
the intent to disrupt and deter criminality. Confiscation orders are not punitive
in nature but are designed to require the defendant to pay back the proceeds of their
crime and to thus deprive them of the benefit of their crime.</p><p>A confiscation
order is issued against an individual after they have been convicted of an offence,
ordering them to pay back the amount that the court has determined they had benefited
from their crime. The confiscation order name is a misnomer as nothing is confiscated.
The court will determine the amount of the benefit received based upon the relevant
criminal conduct. In determining the benefit amount the court can take into consideration
all the financial assets of the defendant including gifts, “hidden assets” and the
“criminal lifestyle” of the defendant. By including the value of assets such as those
classed as “hidden” or “gifts”, the aim of the court is to effectively deprive the
defendant of their use and take them out of circulation. The court will then determine
the available amount which may be less than the benefit amount. The court may allow
a limited time for the confiscation order to be paid, in the event of non-payment
the outstanding balance on the order will begin to accrue interest at a rate of 8%
per annum, with interest continuing to accrue until the order balance is paid in full.
In addition, the defendant will be required to serve a default prison sentence for
non-payment, the serving of the prison sentence does not reduce the amount of the
confiscation order that is due to be paid nor does it stop interest accruing.</p><p>The
impairment charge, as reported annually in the HMCTS Trust Statement, is an accounting
estimate of the outstanding impositions which has been assessed as theoretically unrecoverable.
The charge reduces the value of the overall debt to an amount that HMCTS has estimated,
for accounting purposes only, to be recoverable and ensures that the Financial Statements
do not value the debt at more than is potentially collectable.</p><p>The impairment
charge and resulting net book value figure are solely accounting estimates and do
not reflect the value of the impositions that is being enforced by HMCTS and the other
Agencies, such as the Crown Prosecution Service and the Serious Fraud Office. All
the agencies associated with the enforcement of confiscation orders continue to enforce
the full value of the impositions imposed by the Court.</p><table><tbody><tr><td><p>Financial
Year</p></td><td><p>Gross Balance of confiscation orders outstanding at the end of
the financial year £000</p></td><td><p>Impairment Charge Balance at start of financial
year £000</p></td><td><p>Impairment charge for the year £000</p></td><td><p>Net book
value of the Confiscation orders at end of the financial year £000</p></td></tr><tr><td><p>2022-23</p></td><td><p>2,510,532</p></td><td><p>2,292,082</p></td><td><p>86,397</p></td><td><p>132,053</p></td></tr><tr><td><p>2021-22</p></td><td><p>2,438,105</p></td><td><p>2,210,158</p></td><td><p>81,924</p></td><td><p>146,023</p></td></tr><tr><td><p>2020-21</p></td><td><p>2,353,455</p></td><td><p>2,060,430</p></td><td><p>149,728</p></td><td><p>143,297</p></td></tr><tr><td><p>2019-20</p></td><td><p>2,224,952</p></td><td><p>1,904,113</p></td><td><p>156,317</p></td><td><p>164,522</p></td></tr><tr><td><p>2018-19</p></td><td><p>2,065,303</p></td><td><p>1,808,987</p></td><td><p>95,126</p></td><td><p>161,190</p></td></tr><tr><td><p>2017-18</p></td><td><p>1,961,278</p></td><td><p>1,686,262</p></td><td><p>122,725</p></td><td><p>152,291</p></td></tr><tr><td><p>2016-17</p></td><td><p>1,814,818</p></td><td><p>1,570,973</p></td><td><p>115,289</p></td><td><p>128,556</p></td></tr><tr><td><p>2015-16</p></td><td><p>1,761,449</p></td><td><p>1,370,761</p></td><td><p>200,212</p></td><td><p>190,476</p></td></tr><tr><td><p>2014-15</p></td><td><p>1,573,765</p></td><td><p>1,280,892</p></td><td><p>89,869</p></td><td><p>203,004</p></td></tr><tr><td><p>2013-14</p></td><td><p>1,491,223</p></td><td><p>1,211,215</p></td><td><p>107,213</p></td><td><p>172,795</p></td></tr></tbody></table>
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