Proceeds of Crime Act 2002 s.326 – Interpretation

(1)Criminal conduct is conduct which—

(a)constitutes an offence in any part of the United Kingdom, or

(b)would constitute an offence in any part of the United Kingdom if it occurred there.

(2)But criminal conduct does not include conduct constituting an offence relating to a matter under the care and management of the Board.

(3)In applying subsection (1) it is immaterial whether conduct occurred before or after the passing of this Act.

(4)Property is criminal property if it constitutes a person’s benefit from criminal conduct or it represents such a benefit (in whole or part and whether directly or indirectly); and it is immaterial—

(a)who carried out the conduct;

(b)who benefited from it.

(5)A person benefits from conduct if he obtains property as a result of or in connection with the conduct.

(6)If a person obtains a pecuniary advantage as a result of or in connection with conduct, he is to be taken to obtain as a result of or in connection with the conduct a sum of money equal to the value of the pecuniary advantage.

(7)References to property or a pecuniary advantage obtained in connection with conduct include references to property or a pecuniary advantage obtained in both that connection and some other.

(8)If a person benefits from conduct his benefit is the property obtained as a result of or in connection with the conduct.

(9)Property is all property wherever situated and includes—

(a)money;

(b)all forms of property, real or personal, heritable or moveable;

(c)things in action and other intangible or incorporeal property.

(10)The following rules apply in relation to property—

(a)property is obtained by a person if he obtains an interest in it;

(b)references to an interest, in relation to land in England and Wales or Northern Ireland, are to any legal estate or equitable interest or power;

(c)references to an interest, in relation to land in Scotland, are to any estate, interest, servitude or other heritable right in or over land, including a heritable security;

(d)references to an interest, in relation to property other than land, include references to a right (including a right to possession).

(11)Any reference to an officer of the Board includes a reference to—

(a)a collector of taxes;

(b)an inspector of taxes.

(12)Expressions used in this Part and in the Taxes Acts have the same meaning as in the Taxes Acts (within the meaning given by section 118 of the Taxes Management Act 1970 (c. 9)).

(13)This section applies for the purposes of this Part.

Definitions used in section 326 1

land: (6E) In sub-paragraph (6B) “land” includes part of a building and part of any other structure.
Defined in Sch.9 para.1(6E) · see it in the full Act

Cases considering section 326 3

Serious Organised Crime Agency v Fenech

[2011] EWHC 10 (QB) · 13 January 2011Interprets

Interprets criminal conduct as conduct constituting, or which would constitute, an offence in the United Kingdom, subject to the exclusion for offences relating to matters under the Board’s care and management. The suspected conduct relied on was not confined to tax offences. (see paras [25]; [30]-[31])

Richardson and another v Director of Public Prosecutions

[2014] UKSC 8 · 5 February 2014

The appellants relied on this provision in characterising factory products as the benefit of criminal conduct. That characterisation failed because the alleged assistance of an unlawful population transfer was not established (see para [18]).

NATIONAL CRIME AGENCY v TONINO CARMINO PERSICO

[2021] EWHC 3476 (QB) · 21 December 2021Defines

Sets out the statutory interpretation of criminal conduct within Part 6. The provision forms part of the legal framework for the Agency’s revenue functions. Defines obtaining property by reference to obtaining an interest in it, including legal estates, equitable interests and powers relating to land. Defines criminal property as property representing a person’s benefit from criminal conduct, whether directly or indirectly, and makes the identity of the person who conducted or benefited from the conduct immaterial. Defines benefit from conduct by reference to obtaining property as a result of or in connection with the conduct. Treats a pecuniary advantage as the obtaining of a sum equal to its value for the purposes of the statutory benefit provisions. Confirms that property or a pecuniary advantage obtained in connection with conduct may also be obtained in another connection. Defines the benefit from conduct as the property obtained as a result of or in connection with the conduct. Defines property broadly to include money, real and personal property, and intangible or incorporeal property.

What each judgment says about section 326 is in the case-law panel in the full Act.

Explanatory note

468.This section provides definitions and meanings for some of the terminology used in Part 6 and in particular the terms “criminal conduct” and “criminal property.” For the purposes of this Part, “criminal conduct” does not include an offence relating to a matter under the care and management of the Board of the Inland Revenue, for example, tax fraud.

All the explanatory notes for the Act

Amendments and notes

1 notes from legislation.gov.uk

Commencement

I281S. 326 in force at 24.2.2003 by S.I. 2003/120, art. 2, Sch. (with arts. 3, 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)