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26(1)The Proceeds of Crime Act 2002 is amended as follows.
(2)In section 41 (restraint orders)—
(a)omit subsections (2A) and (2B);
(b)in subsection (3)—
(i)omit “other”;
(ii)after paragraph (b) insert—
“(c)be made subject to conditions.”;
(c)in subsection (4), for the words before paragraph (a) substitute “Section 41ZA applies to an exception to a restraint order if the exception makes provision for any reasonable legal expenses which—”;
(d)omit subsections (5A) and (5B);
(e)omit subsection (10).
(3)After section 41 insert—
(1)Where the court makes an exception to a restraint order under section 41(3) to which this section applies, it must ensure that the exception—
(a)is limited to legal expenses that the specified person has reasonably incurred or that the person reasonably incurs,
(b)specifies the total amount that may be released for legal expenses in pursuance of the exception, and
(c)is made subject to the required conditions (in addition to any conditions imposed under section 41(3)(c)).
(2)The Lord Chancellor may by regulations specify the required conditions for the purposes of subsection (1).
(3)A required condition may, in particular—
(a)restrict who may receive sums released in pursuance of the exception (by, for example, requiring released sums to be paid to professional legal advisers), or
(b)be made for the purpose of controlling the amount of any sum released in pursuance of the exception in respect of an item of expenditure.
(4)A required condition made for the purpose mentioned in subsection (3)(b) may, for example, provide for a sum to be released in respect of an item of expenditure only if—
(a)the court has assessed the amount allowed by the regulations in respect of that item, and
(b)the sum is released for payment of the assessed amount.
(5)For the purposes of subsection (4), the regulations may, in particular, make provision—
(a)limiting the amount of remuneration allowable to representatives for a unit of time worked;
(b)limiting the total amount of remuneration allowable to representatives for work done in connection with proceedings or a step in proceedings;
(c)limiting the amount allowable in respect of an item of expenditure incurred by a representative or incurred, otherwise than in respect of the remuneration of a representative, by a party to proceedings.
(6)Before making regulations under this section, the Lord Chancellor must consult such persons as the Lord Chancellor considers appropriate.”
(4)In section 459 (orders and regulations), in each of subsections (4)(a) and (6)(a), omit “41(5A),”.
Commencement Information
I1Sch. 21 para. 26 not in force at Royal Assent, see s. 255(1)
I2Sch. 21 para. 26(3) in force at 29.6.2026 for specified purposes by S.I. 2026/689, reg. 2(2)
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