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you are allowed to use "reasonable force" and false imprisonment/kidnap convictions can be avoided simply by sitting on the person and stopping them struggling until the police arrive. it is then up to the CPS to decide if there is enough of a case against the person performing citizens arrest to take them to court, aswell as vice versa. they're not just going to take one persons word for it over the others 
that's why charges are often made - it doesn't mean that will result in a conviction
The idea of a citizens arrest is that YOU don't get arrested or have to go through the motions.
[edit] England and Wales
A citizen's arrest (officially called an "any person arrest") is permitted to be made on any person under section 24A of the Police and Criminal Evidence Act 1984 (as amended by the Serious Organised Crime and Police Act 2005) for an indictable offence (in this section referred to simply as "an offence"). This includes either way offences. It is thus permissible for any person to arrest:
- Anyone who is without doubt in the act of committing an offence, or whom the arrestor has reasonable grounds for suspecting to be in the act of committing an offence
- Where an offence has been committed without doubt.., anyone who is without doubt guilty of that offence or whom the arrestor has reasonable grounds for suspecting to be guilty of it
In order for the arrest to be lawful, the following two conditions must also be satisfied:
- It is not reasonably practicable for a constable to make the arrest instead
- The arrestor has reasonable grounds for believing that the arrest is necessary to prevent one of the following:
- The person causing physical injury to himself or others
- The person suffering physical injury
- The person causing loss of or damage to property
- The person absconding before a constable can assume responsibility for him
Use of the second power above is rather risky, since it relies upon the person carrying out the arrest knowing that an indictable or either way offence has been committed. If, for example, the arrested person is later acquitted in court then it could be concluded that no offence has been committed; thus the arrest would be unlawful. The Act therefore gives a constable three additional powers, to arrest:
- Anyone who is (without doubt) about to commit an offence, or whom the constable has reasonable grounds for suspecting to be about to commit an offence
- Anyone whom the constable has reasonable grounds for suspecting to be guilty of an offence which is merely suspected to have taken place
A constable's arrest power is not limited to indictable offences, and conditions different from the above apply.
In addition to the above, a private person may be authorised to execute an arrest warrant, if the court issuing the warrant has given them the authority to do so, and any person may arrest someone who is "unlawfully at large" (for example, an escaped prisoner).
As you see, it's not without risk of charges being brought against the arrestor
Doesn't matter what is written down in law, if the CPS say you're guilty of a botch citizens arrest then you are.
If the person shouts out he's a muslim then you've got even more trouble on your hands.