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Official guidance
Debt Management and Banking Manual

DMBM655110 · Enforcement action: distraint: general considerations

  • DMBM655120 · Distraint on particular types of goods
  • DMBM655130 · Goods you cannot seize
  • DMBM655140 · Exempt goods (indirect taxes)
  • DMBM655150 · Tools of trade
  • DMBM655160 · Motor vehicles
  • DMBM655170 · Checking the registered keeper/owner of a motor vehicle
  • DMBM655180 · Specialised machinery and equipment
  • DMBM655190 · Antiques and paintings
  • DMBM655200 · Computers and accessories
  • DMBM655210 · Electrical goods
  • DMBM655220 · Goods that need a special licence
  • DMBM655230 · Furniture and furnishings
  • DMBM655240 · Goods subject to third party financial agreements
  • DMBM655250 · Retention of title in goods
  • DMBM655260 · Debentures held under fixed and floating charges
  1. Enforcement action: distraint: general considerations: contents
  2. Enforcement action: distraint: general considerations: computers and accessories

DMBM655200 | Enforcement action: distraint: general considerations: computers and accessories

From HM Revenue & Customs · Debt Management and Banking Manual

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Remember that as a consequence of the fall in cost of computer systems in recent years, the auction value of second hand computer equipment is often negligible.

When seizing computers you should always make sure that you list the make and serial number of each component part of a personal computer. For example, the monitor, keyboard, processor and peripherals may each be made by a different manufacturer and together comprise the whole computer. Always list printers separately and ensure that if you seize computers that are networked, you include the file server and ancillary equipment.

If you have to remove computers and their accessories, you must ensure that you do not remove anything that contains the debtor’s confidential information, particularly information necessary to the running of a business. You should ask the defaulter to

  • remove any data held on a computer (giving them the opportunity to copy and retain the data as necessary) otherwise you will have to arrange for its removal yourself which will add considerably to the costs

  • ensure that the equipment is safe to move. For example, the read/write head must be ‘parked' before the processor is moved, otherwise the hard disk may be damaged.

If you levy on computer licences, as well as seizing and listing the original disks (where applicable) you should take possession of the original copy agreement and the passwords (in the form provided by the manufacturer).

If you levy distraint on computer software, you must seize the original and copy disks and manuals.

You should be cautious of any excessive valuation placed on software. Software is often bound by copyright and intellectual property laws. ‘Microsoft’, for example, has strict rules on the transfer of license agreements.

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