Explanatory Note
(This note is not part of the Order)
This Order makes provision for the charging of fees in relation to insolvency proceedings in England and Wales under the Insolvency Act 1986 and earlier legislation which remains in force in relation to cases which were commenced before the 29th December 1986, the date on which the Insolvency Act 1986 came into force. It seeks in all cases to simplify the fee structure applicable in relation to insolvency proceedings under Parts I to XI of the Insolvency Act 1986 and the previous legislation relating to insolvency by reducing the number of fees payable. Hence it is not possible to make a direct comparison between any specific fee prescribed by this Order and a specific fee charged under the Insolvency Fees Order 1986 or the earlier legislation.
Article 3 of, and Schedule 1 to, the Order make provision for the revocation of the Orders listed in the Schedule with some savings. In cases to which the Bankruptcy Act 1914 continues to apply, the only fee prescribed by the Bankruptcy Fees Order 1984 that will continue to be payable in such cases is Fee 13 as set out in Table B in the Schedule to that Order. As regards cases where a winding-up order was made under the provisions of the Companies Act 1985, the only fee prescribed by the Companies (Department of Trade and Industry) Fees Order 1985, which will continue to be payable is Fee 3 as set out in the Schedule to that Order. As regards any case where a bankruptcy order was made under the Insolvency Act 1986 before the date that this Order comes into force, only Fee 13 in Part 2 of the Schedule to the Insolvency Fees Order 1986, will continue to apply. (Provision is made in the Insolvency Practitioners and Insolvency Services Account (Fees) Order 2003 S.I. 2003/3363 for the payment of fees in respect of the issue of cheques and other matters relating to the operation of the Insolvency Services Account in relation to bankruptcies.). As regards cases where a winding-up order is made under the Insolvency Act 1986 before the date this Order comes into force, only Fee 10 in Part 1 of the Schedule to the Insolvency Fees Order 1986 will continue to be payable. (Again the Insolvency Practitioners and Insolvency Services Account (Fees) Order 2003 S.I. 2003/3363 makes provision for the payment of fees in relation to the issue of cheques and other matters relating to the operation of the Insolvency Services Account in relation to liquidations).
Article 4 of, and Schedule 2 to, the Order set out fees payable in relation to winding-up by the court, bankruptcies and individual voluntary arrangements. Article 5 prescribes the fees payable to insolvency practitioners under section 273 of the Insolvency Act 1986. Articles 6 and 7 make provision about the payment of deposits as security for the payment of fees in insolvency proceedings. Article 8 makes provision in relation to the repayment of fees. Article 9 makes provision regarding VAT payable on fees.
A regulatory impact assessment was prepared for the Enterprise Act 2002. This deals with the restructuring of the system of insolvency fees. Copies of this assessment are available from the Policy Unit, The Insolvency Service, 21 Bloomsbury Street, London WC1B 3QW.