The Insolvency Proceedings (Fees) Order 2004

Citation and commencement

1.  This Order may be cited as the Insolvency Proceedings (Fees) Order 2004 and shall come into force on 1st April 2004.

Interpretation

2.—(1) In this Order—

“the Act” means the Insolvency Act 1986 (any reference to a numbered section being to the section so numbered in that Act);

“the commencement date” is the date referred to in Article 1;

“individual voluntary arrangement” means a voluntary arrangement pursuant to Part VIII of the Act; and

“the Rules” means the Insolvency Rules 1986(1) (any reference to a numbered Rule being to the Rule so numbered in the Rules).

(2) A reference to a fee by a means of letters and a number is a reference to the fee so designated in the table in Schedule 2.

Revocations and Transitional Provisions

3.  The instruments listed in the Schedule 1 to this Order are revoked to the extent set out in that Schedule.

Fees payable in connection with bankruptcies, individual voluntary arrangements and winding up

4.—(1) Subject to paragraphs (2) and (3) and article 8, the fees payable to the Secretary of State in respect of proceedings under Parts I to XI of the Act and the performance by the official receiver or Secretary of State of functions under those Parts shall be determined in accordance with the provisions of Schedule 2 to this Order.

(2) Paragraph (1) and the provisions of Schedule 2 shall not apply to a bankruptcy where the bankruptcy order was made before the commencement date except insofar as is necessary to enable the charging of—

(a) fee INV1; or

(b) as regards an individual voluntary arrangement proposed by, or entered into by, the bankrupt, fees IVA1, IVA2 or IVA3.

(3) Paragraph (1) and the provisions of Schedule 2 shall not apply to a winding up by the court where the winding-up order was made before the commencement date except insofar as is necessary to enable the charging of fee INV1.

(4) Each request for the purchase of any government securities made by a trustee in bankruptcy under the Bankruptcy Act 1914 or a liquidator in a winding up under the provisions of the Companies Act 1985 shall be accompanied by a fee of £50.

Fees payable to an insolvency practitioner appointed under section 273

5.  Where a court appoints an insolvency practitioner under section 273(2) to prepare and submit a report under section 274 the court shall, on submission of the report, pay to the practitioner a fee of £310 (that sum being inclusive of Value Added Tax).

Deposits – winding up by the court and bankruptcy

6.—(1) In this Article—

“appropriate deposit” means—

(a)

in relation to a winding-up petition to be presented under the Act the sum of £620;

(b)

in relation to a bankruptcy petition to be presented under section 264(1)(b) the sum of £310; or

(c)

in relation to a bankruptcy petition to be presented under sections 264(1)(a), (c) or (d) the sum of £370;

“order” means a winding-up, or as the case may be, bankruptcy order;

“petition” means a winding-up, or as the case may be, bankruptcy petition;

“relevant assets” means the assets of the company or, as the case may be the assets comprised in the estate of the bankrupt; and

“relevant fees” means in relation to winding-up proceedings fee W1 and in relation to bankruptcy proceedings fee B1 together with any fees payable under section 273.

(2) The deposit shall be security for the payment of the relevant fees and shall be used to discharge those fees to the extent that the relevant assets are insufficient for that purpose.

(3) Where a deposit is paid to the court, the court shall (except to the extent that a fee is payable by virtue of Article 5) transmit the deposit paid to the official receiver attached to the court.

(4) A deposit shall be repaid to the person who made it in a case where a petition is dismissed or withdrawn except in the case of a bankruptcy petition where it is required to pay any fees arising under Article 5.

(5) In any case where an order is made (including any case where the order is subsequently annulled, rescinded or recalled), any deposit made shall be returned to the person who made it save to the extent that the relevant assets are insufficient to discharge the fees for which the deposit is security.

Deposits – official receiver acting as nominee in individual voluntary arrangement

7.—(1) Where a proposal for an individual voluntary arrangement with the official receiver acting as nominee is notified to the official receiver, the notification shall be accompanied by a deposit of £335 as security for fee IVA1 and fee IVA2.

(2) The deposit shall be used to discharge fee IVA1 and fee IVA2.

(3) Where the official receiver declines to act in relation to a proposal of the kind mentioned in paragraph (1) the deposit mentioned in that paragraph shall be refunded to the person entitled to it

(4) Where the official receiver agrees to act as nominee in relation to a proposal of the kind mentioned in paragraph (1) but the proposal is rejected by the bankrupt’s creditors, any balance of the deposit after deducting fee IVA2 shall be returned to the person who is entitled to it.

Reduction and refund of fees – individual voluntary arrangement following bankruptcy

8.  Where proposals made by a bankrupt for an individual voluntary arrangement with the official receiver acting as supervisor are approved by the bankrupt’s creditors, fee B1 shall be reduced to £812.50 and any payments made in respect of fee B1 which exceed that amount shall be refunded to the credit of the estate of the bankrupt.

Value Added Tax

9.  Where Valued Added Tax is chargeable in respect of the provision of a service for which a fee is prescribed by virtue of any provision of this Order (other than Article 5), there shall be payable in addition to that fee the amount of the Value Added Tax.

Falconer of Thoroton, C.

3rd March 2004

We concur

Nick Ainger,

Jim Murphy,

Two of the Lords Commissioners of Her Majesty’s Treasury

4th March 2004