Miscellaneous amendments to sentencing guidelines 2024
Revenue fraud
The issue
Section 32 of the Finance Act 2024 has doubled the maximum penalty for various revenue fraud offences to 14 years. The Revenue fraud guideline covers several offences:
- Conspiracy to defraud, common law, Maximum: 10 years’ custody
- Fraud Act 2006, s.1, Maximum: 10 years’ custody
- Theft Act 1968, s.17, Maximum: 7 years’ custody
- Customs and Excise Management Act 1979 (sections 50, 170 and 170B), Maximum: 7 years’ custody
- Taxes Management Act 1970 (section 106A), Maximum: 7 years’ custody
- Value Added Tax Act 1994 (section 72) Maximum: 7 years’ custody
- Cheat the public revenue, common law, Maximum: Life imprisonment
For offences committed on or after February 22, 2024 the maximum is now 14 years for:
- Customs and Excise Management Act 1979 (sections 50, 170 and 170B)
- Taxes Management Act 1970 (section 106A)
- Value Added Tax Act 1994 (section 72)
The Revenue fraud guideline already has three sentence tables:
- Table 1 for offences with a maximum of 10 years
- Table 2 for offences with a maximum of 7 years, and
- Table 3 for offences with a maximum of life imprisonment.
The proposed change
The Council noted that the policy paper relating to the legislative change states that the increase relates to “the most egregious examples of tax fraud”. With regard to operational impacts the paper states: “There may be increased prison costs associated with longer sentencing if imposed by Sentencing Council”.
The Council is therefore proposing to add a fourth table to the Revenue fraud guideline for offences with a 14 year statutory maximum that maintains sentences at the lower end of seriousness at current levels but allows for higher sentences were the amount defrauded is over £2 million (harm categories 1, 2 and 3).
| Culpability | |||
| Harm |
A |
B |
C |
|
Category 1 £50 million or more Starting point based on £80 million |
Starting point 11 years’ custody |
Starting point 7 years’ custody |
Starting point 5 years’ custody |
|
Category range 9 – 13 years’ custody |
Category range 6 – 11 years’ custody |
Category range 4 – 7 years’ custody |
|
|
Category 2 £10 million–£50 million Starting point based on £30 million |
Starting point 9 years’ custody |
Starting point 6 years’ custody |
Starting point 4 years’ custody |
|
Category range 7 – 11 years’ custody |
Category range 5 – 9 years’ custody |
Category range 3 – 6 years’ custody |
|
|
Category 3 £2 million–£10 million Starting point based on £5 million |
Starting point 7 years’ custody |
Starting point 5 years’ custody |
Starting point 3 years’ custody |
|
Category range 5 – 9 years’ custody |
Category range 4 – 7 years’ custody |
Category range 2 – 5 years’ custody |
|
|
Category 4 £500,000 – £2 million Starting point based on £1 million |
Starting point 5 years 6 months’ custody |
Starting point 4 years’ custody |
Starting point 2 years 6 months’ custody |
|
Category range 4 years’ – 6 years 6 months’ custody |
Category range 2 years 6 months’ – 5 years’ custody |
Category range 1 year 3 months’ – 3 years 6 months’ custody |
|
|
Category 5 £100,000 – £500,000 Starting point based on £300,000 |
Starting point 4 years’ custody |
Starting point 2 years 6 months’ custody |
Starting point 1 year 3 months’ custody |
|
Category range 2 years 6 months’ – 5 years’ custody |
Category range 1 year 3 months’ – 3 years 6 months’ custody |
Category range 26 weeks’ – 2 years 6 months’ custody |
|
|
Category 6 £20,000 – £100,000 Starting point based on £50,000 |
Starting point 2 years 6 months’ custody |
Starting point 1 year 3 months’ custody |
Starting point High level community order |
|
Category range 1 year 3 months’ – 3 years 6 months’ custody |
Category range High level community order – 2 years 6 months’ custody |
Category range Low level community order – 36 weeks’ custody |
|
|
Category 7 Less than £20,000 Starting point based on £12,500 |
Starting point 1 year 3 months’ custody |
Starting point 26 weeks’ custody |
Starting point Medium level community order |
|
Category range 26 weeks’ – 2 years 6 months’ custody |
Category range Medium level community order – 1 year 3 months’ custody |
Category range Band C fine – High level community order |
In the interim the Council has added a note to the guideline to indicate that the change in the statutory maximum has not yet been reflected in the guideline (see the annex).
The impact
As set out in the policy paper, this change is proposed to impact only the most serious offending, therefore the proposed changes to the guideline are intended to reflect this and limit any impact on prison resources. Sentences will only exceed current levels if they are at the highest level of seriousness and any increase in sentences would be attributable to the change in legislation rather than to the guideline.