Can My House Be Taken in a Proceeds of Crime Case?

If you or someone connected to you is under investigation or prosecution for a criminal offence involving financial gain, you may be concerned about whether your home could be seized as part of a proceeds of crime case. Under the Proceeds of Crime Act 2002 (POCA), UK authorities have wide-ranging powers to recover assets believed to have been obtained through criminal activity. In some cases, this can include a person’s house. Whether your property can be taken depends on several legal and factual factors, including ownership, funding, connection to the crime and the value of the alleged benefit.

This article explains when and how a house may be seized or restrained under proceeds of crime legislation, what legal rights apply and what steps you should take if your property is at risk.

What is the Proceeds of Crime Act (POCA)?

The Proceeds of Crime Act 2002 is the UK’s main legislation for dealing with criminal assets. It allows the authorities to recover the financial proceeds of unlawful conduct through a number of mechanisms. The most common are:

Confiscation orders made after a criminal conviction, requiring the defendant to repay the value of their criminal benefit

Civil recovery, a non-criminal route where assets can be seized if they are suspected to be proceeds of crime even without a conviction

Restraint orders, which freeze assets including homes to prevent disposal or transfer while a criminal investigation or trial is ongoing

Cash forfeiture and account freezing, which relate to money or funds suspected of being linked to criminal activity

Houses, land, vehicles and other high-value items can all be considered under these powers if they are believed to represent the proceeds of crime or to have been acquired with criminal funds.

When can a house be taken under POCA?

A house may be seized or included in a confiscation or recovery order if it meets certain criteria.

If the property is owned by the defendant, and they are convicted of a criminal offence, the court may decide they have financially benefited from that crime. The value of that benefit can then be recovered from their available assets, including their home.

If the property was partially funded by criminal proceeds, even if part of the purchase came from legitimate funds, the entire house may be considered tainted and subject to seizure.

If the house was gifted or transferred to others, for example to avoid seizure, the court may treat it as a tainted gift and include it in confiscation proceedings.

If the house is held in joint ownership, the court may divide the value according to each person’s beneficial interest. It will usually seek recovery only of the convicted person’s share, but this may still affect the co-owner.

In civil recovery cases, if the National Crime Agency or Crown Prosecution Service believes the house was funded by criminal property, they may apply to the High Court to seize it even if the owner is not convicted. These cases are based on the civil standard of proof, which is the balance of probabilities.

Can restraint orders affect my house?

Yes. During a criminal investigation, the Crown may apply for a restraint order to prevent you from selling or transferring your house or other assets. This order is designed to freeze your property while the case is ongoing so that it remains available if a confiscation order is eventually made. Breaching a restraint order can lead to criminal penalties and further proceedings.

If your house is restrained, you may still live in it but you cannot mortgage, sell or gift it without court permission.

What about innocent co-owners or family members?

If you jointly own a house with someone who is under investigation or convicted, your interest in the property may still be protected. The court will assess whether you contributed to the purchase or hold a legitimate beneficial interest. If you can prove that your share was funded through lawful means and that you had no involvement in the crime, you may be able to retain your portion.

However, if the house was gifted to you or placed in your name in anticipation of legal action, the court may set aside the transfer as part of a proceeds of crime recovery.

How is the value of the house treated in a confiscation order?

The court does not automatically seize a house or force its sale. Instead, it places a monetary value on the convicted person’s benefit from crime and orders them to repay that amount from their available assets. If the house is part of those assets, and there are no other means to satisfy the order, the court may enforce a sale.

In some cases, the house may be sold voluntarily to pay the confiscation order. In others, enforcement officers may seek a court order to force the sale. The convicted person is usually given a period to pay, typically three to six months, with the possibility of an extension.

If they fail to pay, they may be sent to prison under a default sentence, although the debt itself remains enforceable.

What can you do to protect your house?

If you or someone you live with is facing proceedings under POCA, it is essential to get specialist legal advice. Steps you can take include:

Providing evidence of legitimate ownership or funding for your share of the property

Challenging restraint orders where appropriate

Negotiating with the prosecution to limit the value or extent of confiscation

Seeking third-party interest hearings to assert your legal claim if you are not the defendant

Avoiding any transfer or disposal of the property that could be seen as an attempt to frustrate recovery

Conclusion

Yes, your house can be taken in a proceeds of crime case if it is shown to be connected to criminal activity, funded with illegal money or used to hide assets. The authorities have powerful tools under the Proceeds of Crime Act to restrain, confiscate or recover property depending on the circumstances. However, if you are an innocent party or can prove legitimate ownership, your interest in the house may be protected. With expert legal advice and early intervention, it may be possible to avoid losing your home or limit the financial impact of enforcement action.