Part XIIE+W+S Preferential debts in Company and Individual Insolvency

Modifications etc. (not altering text)

C1Pt. XII (ss. 386, 387) extended with modifications by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5)(a), 90, 126(3), Sch. 15

Pt. XII (ss.386, 387) applied (with modifications) (1.2.1993) by Friendly Societies Act 1992 (c. 40), ss. 21(1), 22, 23, Sch. 10 Pt. I para. 1(a) (with ss. 7(5), 93(4)); S.I. 1993/16, art. 2, Sch.3

Pt. XII (ss. 386, 387) modified (1.2.1993) by Friendly Societies Act 1992 (c. 40), s. 23, Sch. 10 Pt. I para. 1(a) (with ss. 7(5), 93(4)); S.I. 1993/16, art. 2, Sch.3

Pt. XII (ss. 386-387) applied (1.12.1994) by S.I. 1994/2421, art. 4(3)(c)

Pt. XII (ss. 386-387) applied (with modifications) (1.12.1994) by S.I. 1994/2421, art. 8(3)(4)(5)(8)(9), 10(2)(3)(6), Sch. 4 Pt. II, Sch. 7

C2Third Group of Parts (Pts. 12-19) applied to limited liability partnerships (with modifications) (E.W.S.) (6.4.2001) by S.I. 2001/1090, reg. 5, Schs. 3, 4 (as amended (4.3.2004) by S.I. 2004/355, art. 10 and (1.10.2005) by S.I. 2005/1989, reg. 3, Sch. 2 (with reg. 4))

386 Categories of preferential debts. E+W+S

(1)A reference in this Act to the preferential debts of a company or an individual is to the debts listed in Schedule 6 to this Act (money owed to the Inland Revenue for income tax deducted at source; VAT, [F1insurance premium tax,][F2landfill tax,][F3climate change levy,][F4aggregates levy,]car tax, betting and gaming duties [F5,beer duty][F6, lottery duty][F7, air passenger duty]; social security and pension scheme contributions; remuneration etc. of employees [F8;levies on coal and steel production]); and references to preferential creditors are to be read accordingly.

(2)In that Schedule “the debtor” means the company or the individual concerned.

(3)Schedule 6 is to be read with [F9Schedule 4 to the Pension Schemes Act 1993](occupational pension scheme contributions).

Textual Amendments

F1Words in s. 386(1) inserted (3.5.1994) by 1994 c. 9, s. 64, Sch. 7 Pt. III para. 7(2)

F2Words in s. 386(1) inserted (29.4.1996) by 1996 c. 8, s. 60, Sch. 5 Pt. III para. 12(1)

F3Words in s. 386(1) inserted (28.7.2000) by 2000 c. 17, s. 30, Sch. 7 para. 3(1)(a)

F4Words in s. 386(1) inserted (11.5.2001) by 2001 c. 9, s. 27, Sch. 5 para. 17(1)(a)

F7Words in s. 386(1) inserted (1.5.1995) by 1995 c. 4, s. 17

F8Words inserted by S.I. 1987/2093, reg. 2(1)(3)

F9Words in s. 386(3) substituted (7.2.1994) by 1993 c. 48, s. 190, Sch. 8 para. 18 (with s. 6(8)); S.I. 1994/86, art. 2

Modifications etc. (not altering text)

C3S.386 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II

387“The relevant date".E+W+S

(1)This section explains references in Schedule 6 to the relevant date (being the date which determines the existence and amount of a preferential debt).

(2)For the purposes of section 4 in Part I (meetings to consider company voluntary arrangement), the relevant date in relation to a company which is not being wound up is—

(a)where an administration order is in force in relation to the company, the date of the making of that order, and

(b)where no such order has been made, the date [F10on which the voluntary arrangement takes effect].

[F11(2A)For the purposes of paragraph 31 of Schedule A1 (meetings to consider company voluntary arrangement where a moratorium under section 1A is in force), the relevant date in relation to a company is the date of filing.]

(3)In relation to a company which is being wound up, the following applies—

(a)if the winding up is by the court, and the winding-up order was made immediately upon the discharge of an administration order, the relevant date is the date of the making of the administration order;

[F12(aa)if the winding up is by the court and the winding-up order was made following conversion of administration into winding up by virtue of Article 37 of the EC Regulation, the relevant date is the date of the making of the administration order;

(ab)if the company is deemed to have passed a resolution for voluntary winding up by virtue of an order following conversion of administration into winding up under Article 37 of the EC Regulation, the relevant date is the date of the making of the administration order;]

(b)if the case does not fall within paragraph (a) [F13, (aa) or (ab)]and the company—

(i)is being wound up by the court, and

(ii)had not commenced to be wound up voluntarily before the date of the making of the winding-up order,

the relevant date is the date of the appointment (or first appointment) of a provisional liquidator or, if no such appointment has been made, the date of the winding-up order;

(c)if the case does not fall within [F14paragraph (a), (aa), (ab) or (b)], the relevant date is the date of the passing of the resolution for the winding up of the company.

(4)In relation to a company in receivership (where section 40 or, as the case may be, section 59 applies), the relevant date is—

(a)in England and Wales, the date of the appointment of the receiver by debenture-holders, and

(b)in Scotland, the date of the appointment of the receiver under section 53(6) or (as the case may be) 54(5).

(5)For the purposes of section 258 in Part VIII (individual voluntary arrangements), the relevant date is, in relation to a debtor who is not an undischarged bankrupt

[F15(a)where an interim order has been made under section 252 with respect to his proposal, the date of that order, and

(b)in any other case, the date on which the voluntary arrangement takes effect.]

(6)In relation to a bankrupt, the following applies—

(a)where at the time the bankruptcy order was made there was an interim receiver appointed under section 286, the relevant date is the date on which the interim receiver was first appointed after the presentation of the bankruptcy petition;

(b)otherwise, the relevant date is the date of the making of the bankruptcy order.

Textual Amendments

F10Words in s. 387(2)(b) substituted (1.1.2003) by 2000 c. 39, s. 2, Sch. 2 Pt. I para. 11; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)

F11S. 387(2A) inserted (1.1.2003) by 2000 c. 39, s. 1, Sch. 1 para. 9; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)

F13Words in s. 387(3)(b) inserted (31.5.2002) by S.I. 2002/1240, reg. 16(b)

F14Words in s. 387(3)(c) substituted (31.5.2002) by S.I 2002/1240, reg. 16(c)

F15S. 387(5)(a)(b) substituted (1.1.2003) for words in s. 387(5) by 2000 c. 39, s. 3, Sch. 3 para. 15; S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)

Modifications etc. (not altering text)

C5S. 387(1)(5)(6) applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II