HCEG Training

Practice of taking control of goods

Overview

The practice of taking control of goods will be summarised in the following chapter by way of paragraph headings.

Learning outcomes

By the end of this chapter you will be able to:

identify the categories of legally exempt goods

explain the Enforcement Agent’s rights of entry and re-entry

describe the common types of ownership and exemption disputes that can occur

describe how to deal with the common types of ownership and exemption disputes that can occur

explain the process for taking control of goods, including:

the different ways of taking control of goods

the obligations of the Enforcement Agent

the obligations of the debtor

identify the documentation that must be completed when taking control of goods

describe the importance of accurate and legible completion of documentation

explain the importance of providing information about payment opportunities and the consequences of non-payment

Categories of legally exempt goods

Under regulation 4 Taking Control of Goods Regulations 2013 (TCoG Regs) the following goods of a debtor are exempt from being taken control of:-

• items or equipment (for example, tools, books, telephones, computer equipment and vehicles) which are necessary for use personally by the debtor in the debtor’s employment, business, trade, profession, study or education, except that in any case the aggregate value of the items or equipment to which this exemption is applied shall not exceed £1,350;

EXCEPT that this exemption of 'tools of the trade' does NOT apply to the execution of a Warrant of Control for Non-Domestic Rates.

• such clothing, bedding, furniture, household equipment, items and provisions as are reasonably required to satisfy the basic domestic needs of the debtor and every member of the debtor’s household, including (but not restricted to):-
• a cooker or microwave;
• a refrigerator;
• a washing machine;
• a dining table large enough, and sufficient dining chairs, to seat the debtor and every member of the debtor’s household;
• beds and bedding sufficient for the debtor and every member of the debtor’s household;
• one landline telephone, or if there is no landline telephone at the premises, a mobile or internet telephone which may be used by the debtor or a member of the debtor’s household;
• any item or equipment reasonably required for:-
• the medical care of the debtor or any member of the debtor’s household;
• safety in the dwelling-house;
• security of the dwelling-house (for example, an alarm system) or security in the dwelling-house;
• sufficient lamps or stoves, or other appliance designed to provide lighting or heating facilities, to satisfy the basic heating and lighting needs of the debtor’s household;
• any item or equipment reasonably required for the care of:-
• a person under the age of 18;
• a disabled person;
• an older person;
• assistance dogs (including guide dogs, hearing dogs and dogs for disabled persons), sheep dogs, guard dogs or domestic pets;
• a vehicle on which a valid disabled person’s badge is displayed because it is used for, or in relation to which there are reasonable grounds for believing that it is used for, the carriage of a disabled person;
• a vehicle (whether in public ownership or not) which is being used for, or in relation to which there are reasonable grounds for believing that it is used for, police, fire or ambulance purposes;
• a vehicle displaying a valid British Medical Association badge or other health emergency badge because it is being used for, or in relation to which there are reasonable grounds for believing that it is used for, health emergency purposes.

In addition, under reg.5, TCoG Regs also exempt are:-

Goods that constitute a dwelling, such as a caravan, boat, tent, etc., if being used as a person's principle home.

Enforcement agents right of entry

Where goods are taken into control on public land or on a highway, the question of entry to the land does not arise but where goods are on private land or in a building or structure, then unless lawful entry can be made in accordance with the entry provisions in Schedule 12 to the Tribunals, Courts and Enforcement  Act 2007 (the TCE Act), and in the Taking Control of Goods Regulations 2013 (the TCoG Regs), the Enforcement  agent is unable to proceed. Where an enforcement agent has the lawful right to take control of goods, regulation 20 of the TCoG Regulations 2013 gives the agent the right to enter premises to search for goods that may be put under control and to facilitate their removal. 

Premises that may be entered

There are some limitations on the premises that may be entered unless the enforcement  agent has obtained a warrant.  For commercial rent debts, only the rented premises may be entered and for HMRC tax debts only premises used by the debtor for trade or business may be entered. For all other debts, entry without a warrant can only be to premises where the debtor lives, or carries on a trade or business.  However, where the enforcement  agent obtains a warrant issued by the court, entry can be made to any premises specified in the warrant, the agent having shown to the satisfaction of the court that there are goods of the debtor on the premises. An Enforcement  Notice must have been issued at least 7 clear days before entry is made and the entry must be within 12 months from the date of that notice.  Entry must be peaceful unless conditions allowing for the use of reasonable force to enter are met. Reasonable force to enter can be used:

to enforce a debt recoverable under a warrant of control issued under section 76 of the Magistrates' Courts Act 1980 (as amended) in relation to a conviction;

by an authorised enforcement  officer acting to recover a debt under an order of the County Court or the High Court;

by an authorised officer of HMRC acting to recover a debt relating to national taxation.

Where a debt is not within the above categories, but the enforcement agent has obtained a warrant from the court authorising the use of reasonable force to enter in a particular case...................................................................................