In this Blog, Ex HMRC expert and head of tax disputes, Andy Lynch, considers Account Freezing Orders in 2026 and their likely use by HMRC. And how our team can help you fight them.
Account Freezing Orders – an introduction
An account freezing order is a court order that prevents money held in a bank or building society account from being used or moved while an investigation is ongoing.
In 2026, these orders are being used more frequently by enforcement authorities, particularly HM Revenue & Customs, as a fast and effective way to disrupt suspected unlawful activity without first bringing criminal proceedings. For individuals and company directors, the impact can be immediate and severe, cutting off access to funds needed for day to day living or trading.
If you are contacted by HMRC – contact Andy Lynch today for a free consultation. Our Account Freezing Orders team are experts at defending these HMRC claims.
At a glance
Account freezing orders allow enforcement agencies to freeze bank accounts at an early stage of an investigation. They are usually obtained without notice, can last for many months, and may lead to permanent forfeiture of funds if not challenged. Early legal advice is critical.
What is an account freezing order and why are they used so frequently in 2026?
An account freezing order is a statutory power that allows an enforcement authority to freeze funds held in a UK bank or building society account where there is reasonable suspicion that the money is the proceeds of crime or intended for unlawful conduct. The order is made by the Magistrates’ Court and can apply to personal or business accounts.
- Their increasing use in 2026 reflects a broader shift in enforcement strategy.
- Rather than waiting for lengthy investigations or criminal prosecutions, authorities are using account freezing orders as an early intervention tool.
- Freezing funds immediately applies pressure, disrupts activity, and often forces the account holder to engage.
For directors and business owners, this approach can feel disproportionate. An account may be frozen before any formal allegation is made and before the account holder has had a chance to explain the source or purpose of the funds.
Account freezing orders have become a routine enforcement mechanism, not an exceptional one, and they are often deployed at a very early stage.
How does an account freezing order work under POCA in England and Wales?
Applications for account freezing orders are usually made without notice, meaning the account holder is not warned in advance. Once the order is granted, the bank is required to freeze the account immediately, preventing withdrawals, transfers, or payments.
The legal test is relatively low.
- The authority does not need to prove that a criminal offence has occurred.
- It is enough to show reasonable grounds to suspect that the funds are recoverable property or intended for unlawful use.
- This is one of the reasons account freezing orders are so attractive to enforcement bodies.
After the order is made, the account holder will receive notice and has the right to apply to vary or discharge it. In practice, this is often the first opportunity to challenge the basis of the order or seek limited access to funds.
For businesses, the consequences can be acute. Payroll, supplier payments, and tax liabilities may all be affected overnight, creating knock on risks including insolvency.
How long does an account freezing order last and what happens next?
An account freezing order can initially last for up to two years. During that period, the enforcement authority will continue its investigation and decide whether to pursue forfeiture of the frozen funds.
In many cases, the next step is an application for an account forfeiture order. This is a separate process in which the authority asks the court to permanently confiscate the money on the basis that it is the proceeds of crime. Again, this can proceed without any criminal conviction.
If no challenge is made, the risk is that funds remain frozen for an extended period and are ultimately lost. Even where only part of the balance is disputed, failure to engage early can weaken the account holder’s position.
For directors, there may also be wider consequences. A frozen company account can trigger creditor action, HMRC enforcement, or scrutiny of director conduct.
In summary – Account freezing orders are not short term measures and can lead to permanent loss of funds if left unchallenged.
How can you challenge or vary an account freezing order?
Account freezing orders can be challenged, but timing and evidence are critical. Common grounds include demonstrating a legitimate source of funds, showing that the order is disproportionate, or identifying procedural flaws in the application.
- It is also possible to apply to vary an order to allow access to funds for specific purposes, such as living expenses, legal costs, or essential business payments.
- These applications require careful preparation and clear supporting evidence.
Early engagement often makes a significant difference. Courts expect account holders to act promptly and transparently. Delay can be interpreted as acquiescence, even where there may be strong arguments available.
In some cases, a strategic approach involving parallel remedies may be appropriate, particularly where the freezing of funds risks wider commercial or insolvency consequences.
What is the difference between an account freezing order and a High Court freezing injunction?
Although they are often confused, account freezing orders and High Court freezing injunctions are fundamentally different.
An account freezing order is a statutory tool focused on money held in bank accounts and is obtained through the Magistrates’ Court. It does not require a civil claim to be issued and is not dependent on proving a cause of action.
A freezing injunction, by contrast, is a High Court remedy used in civil litigation to prevent a defendant from dealing with assets more broadly. It requires a strong legal claim, evidence of a real risk of dissipation, and full and frank disclosure to the court.
Understanding the distinction matters because the legal strategy is different. The grounds for challenge, the procedural safeguards, and the commercial implications are not the same. Firms that only deal with one type of freezing order often miss opportunities when cases cross over between statutory enforcement and civil litigation.
Takeaway: Account freezing orders and freezing injunctions may look similar in effect, but they operate under different legal regimes and require different responses.
Practical next steps if your account has been frozen
If your personal or business account has been frozen, the most important step is to act quickly. Ignoring the order or assuming it will resolve itself can significantly increase risk. Our team is here to help.
Specialist advice can help assess whether the order can be challenged, whether funds can be released, and how to manage wider consequences such as tax exposure or insolvency pressure. Early intervention often preserves options that may be lost with delay.
Francis Wilks & Jones advises individuals, directors, and businesses on account freezing orders, freezing injunctions, and related enforcement action across England and Wales.
Our specialist HMRC Account Freezing order team
FWJ has decades of experience resolving Account Freezing Orders, lead by Andy Lynch who has 18 years experience working at HMRC.
Our team includes
- Andy Lynch. Andy is an expert on a wide range of HMRC claims and before joining FWJ, he spent 18 years at HM Customs & Excise in their National Investigation Service. His experience is unrivalled in all types of HMRC claims including HMRC investigation defence, VAT claims, R&D tax credit defence, Account Freezing Orders, Tax Disclosure, Code of Practice 8 & 9 claims, winding up petition defence and much more.
- Stephen Downie. Stephen is a Partner and a former ACCA accountant who combines financial expertise with deep legal knowledge to deliver clear, commercial advice. He acts for directors, shareholders, insolvency practitioners and private clients in corporate governance disputes, director disqualification defence, and HMRC-related claims including tax avoidance schemes, PLNs, VAT and PAYE security demands. His focus is always on achieving the best outcome for clients as efficiently and cost-effectively as possible.
- Anita Sharma. Anita is a Senior Associate specialising in tax litigation and financial disputes with HMRC. She advises high-net-worth individuals and major commercial clients on appeals against HMRC decisions, complex tax assessments, and enforcement proceedings. Anita has secured interim relief following HMRC revocations to keep clients trading during appeals and is known for achieving practical, results-focused outcomes in high-value disputes.
- Khaliq Martin. Khaliq is a Senior Paralegal in the tax disputes team assisting on a broad range of HMRC investigation and defence matters. Khaliq draws on his international litigation background and public sector experience to help prepare detailed evidence and submissions for use in appeals and settlement negotiations, ensuring cases are presented clearly, carefully and effectively.
