Proposed 6 month increase to bank account freezes

Criminal Finances Bill proposes a much longer 'moratorium period' & other important changes

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I have written a new article on the Criminal Finances Bill which has now completed the Committee Stage in the House of Commons.

The Bill will increase the period during which a bank can freeze a customer's account from about 6 weeks to more than 7 months.  The existing freeze period brings forth howls of anguish from any legitimate account holder affected by it.  Things are about to get a lot worse.

The Bill will also grant the National Crime Agency new powers to obtain information from those (such as accountants, lawyers, estate agents and banks) in the 'regulated sector' - bringing to an end the current regime of 'shop and stop'.

The new offence of failing to prevent the facilitation of a tax offence - again affecting accountants and others - is also in the Bill.

You can find my blog article HERE.

David

Replies (10)

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RLI
By lionofludesch
26th Nov 2016 18:29

Once again - the Government cuts its expenditure by getting others to work for nothing.

No doubt it won't be long before the bank accounts of all Self Assessment taxpayers will be frozen in January so that the Government can cash in on late payment penalties.

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avatar
By billgilcom
27th Nov 2016 13:02

David - an excellent blog - as usual.
Just finished listening to Mundell and true to form he uses the terms "tax avoidance and tax evasion schemes" in the same breath and sentence.

I can see the Unexplained Wealth Orders being applied to tax avoidance in due course which is not what I interpreted them to be appropriate to - namely tax evasion only.

Never mind good work ahead on this basis with the reintroduction of double entry capital statements and forensic accounting to defend the clients being chased inappropriately.
Bill S
www.wamstaxltd.com

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RLI
By lionofludesch
27th Nov 2016 13:36

I'd imagine that this will lead to folk keeping a huge wedge of cash in the house - just in case some banker panics and hits the button.

Just what HMRC are wanting, of course ......

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paddle steamer
By DJKL
28th Nov 2016 10:25

Given it is nearly the festive season (firm believer this does not start until December despite the shops/adverts), and given that holding a reserve in cash is fraught with difficulties (notes can be withdrawn from circulation etc), this seems the perfect opportunity to arrange peace of mind re the future risk of the inadvertent (or not so inadvertent) closure of your bank accounts.

By giving your other half jewellery for Christmas you kill two birds with one stone; something that acts as a store of value and may also earn you brownie points.

In effect you are ensuring you will later have items to pawn or barter for that tin of baked beans with mini sausages you will be subsisting upon when the freezing of your accounts takes place.

Who says romance is dead.

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Replying to Pembroke:
paddle steamer
By DJKL
28th Nov 2016 10:56

Pembroke wrote:

If your wife/partner reads that comment I suspect you might find yourself having said jewellery surgically extracted from some part of your anatomy this Christmas.

I am probably safe from her wrath this year, jewellery only tends to be on the Xmas present list when I am particularly flush- with children (albeit of the older sort) the number of years I have felt flush have been few and far between.

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Replying to DJKL:
David Winch
By David Winch
28th Nov 2016 10:51

Just be aware that under proposed new Chapter 3A of PoCA 2002 that jewellery of your wife's (if worth over £1,000) could be seized by HMRC, police etc in a search of your home & may then be forfeit if you cannot satisfy a Magistrates' Court that it is legitimate.
Just saying!
David

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Replying to davidwinch:
paddle steamer
By DJKL
28th Nov 2016 11:07

davidwinch wrote:

Just be aware that under proposed new Chapter 3A of PoCA 2002 that jewellery of your wife's (if worth over £1,000) could be seized by HMRC, police etc in a search of your home & may then be forfeit if you cannot satisfy a Magistrates' Court that it is legitimate.
Just saying!
David

So, looks like I will need a map of the garden with X marks the spot! Underneath the rhubarb perhaps!!

I hasten to add I see it as a tongue in cheek means of surviving if , by error etc, my accounts are frozen-honest, nothing to hide.

The interesting question is, if my accounts are frozen, and I presumably cannot access my online bank accounts, how do I demonstrate I purchased her a piece of jewellery from my account using taxed income; should I start printing statements for my personal account as if I ever need to prove my innocence I will likely have no access to the evidence -the account being frozen.

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Anyone Without A Sense Of Humour Is At The Mercy Of Everyone Else
By WellHeeled
01st Dec 2016 01:36

Thank you again Mr Winch.

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By mrme89
01st Dec 2016 11:06

Being an accountant is become less desirable each day. I'm only in my 20's so maybe it's time to jump ship now.

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Replying to mrme89:
paddle steamer
By DJKL
01st Dec 2016 11:28

mrme89 wrote:

Being an accountant is become less desirable each day. I'm only in my 20's so maybe it's time to jump ship now.

Lion taming may have good prospects.

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