(1)The value at any time (the material time) of a tainted gift is the greater of the following—
(a)the value (at the time of the gift) of the property given, adjusted to take account of later changes in the value of money;
(b)the value (at the material time) of the property found under subsection (2).
(2)The property found under this subsection is as follows—
(a)if the recipient holds the property given, the property found under this subsection is that property;
(b)if the recipient holds no part of the property given, the property found under this subsection is any property which directly or indirectly represents it in his hands;
(c)if the recipient holds part of the property given, the property found under this subsection is that part and any property which directly or indirectly represents the other part in his hands.
(3)The references in subsection (1)(a) and (b) to the value are to the value found in accordance with section 79.
Cases considering section 81 6
[2018] EWCA Crim 542 · 15 March 2018Limits
The court held that this provision fixes the value of a tainted gift and does not permit a tracing exercise once the value at the date of the gift is higher than property found. (see paras [14]-[15]; [23]-[24])
The court held that the value of a tainted gift is the greater of its adjusted value when given and the value of property found in the recipient’s hands. (see paras [14]-[15])
The court held that, where the original value exceeds property found, no further inquiry into assets representing the gift is required. (see paras [7]; [15]; [23])
The court rejected the argument that property must be identified in a recipient’s hands before a spent monetary gift can be included in the recoverable amount. (see para [7])
The court set out that the values referred to in section 81 are determined under section 79. (see para [14])
[2016] EWCA Crim 10 · 3 February 2016
The court applied the requirement to take the greater of the gift’s value at the date of the gift and the value of property found at the material time. The former was £20,000 and governed the available amount. (see paras [10]-[11])
The court treated the daughter’s retained interest in the property as the property found at the material time, but it had no net value. (see paras [10]-[12])
[2013] EWCA Crim 502 · 8 March 2013Interprets
The court held that the specific regime for valuing tainted gifts contains no link between value and recoverability, even where the recipient has parted with the gift. (see para [13])
What each judgment says about section 81 is in the case-law panel in the full Act.