Explanatory note
(This note is not part of the Order)
This Order makes further amendments to the Insolvency Proceedings (Fees) Order 2004 (S.I. 2004/593) (“the 2004 Order”).
Article 2(2) of this Order increases the amount of the various deposits payable pursuant to article 6 of the 2004 Order. Article 2(3) reduces the deposit payable under article 7(1) of the 2004 Order in connection with the registration of an individual voluntary arrangement and the performance by the official receiver of the functions of nominee in relation to such an arrangement. The Table of Fees in Schedule 2 to the 2004 Order is amended by article 2(4) of this Order so as to reduce the fee currently payable to the Secretary of State to register an individual voluntary arrangement, fee IVA1, from £35 to £15. These amendments are subject to the transitional provisions in Article 6.
This Order also makes provision with respect to the Bankruptcy Fees Order 1984 (S.I. 1984/880, as amended), the Companies (Department of Trade and Industry) Fees Order 1985 (S.I. 1985/1784, as amended) and the Insolvency Fees Order 1986 (S.I. 1986/2030, as amended) which Orders were largely revoked by the 2004 Order. In the case of the Bankruptcy Fees Order 1984 and the Companies (Department of Trade and Industry) Fees Order 1985, certain fees continue to be applicable to cases that were commenced before 29th December 1986 under legislation which preceded the Insolvency Act 1986 (c. 45). In the case of the Insolvency Fees Order 1986, certain fees are applicable to cases that were commenced after 29th December 1986 under the Insolvency Act 1986 but in respect of which a winding up or bankruptcy order was made before 1st April 2004 (“old cases”). The fees that continue to apply to the old cases are for the performance by the Secretary of State of his general duties fixed by reference to a percentage of an amount paid into the Insolvency Services Account by trustees, liquidators or the official receiver.
The effect of the amendments made by articles 3, 4 and 5 of this Order is as follows—
no fees are payable after the commencement date in any case where £100,000 or more has been paid into the Insolvency Services Account before the commencement date; and
as regards any case where less than £100,000 has been paid into the Insolvency Services Account before the commencement date, fees are payable in relation to that proportion of payments into that account on or after the commencement date which takes the balance of sums paid into that account up to £100,000; no fees further fees are then payable.
The percentage fees that are payable in relation to the first £100,000 paid into the Insolvency Services Account in old cases are as follows:
| Type of proceedings | % Fee on sums paid into the Insolvency Services Account | Provision under which fee charged |
|---|---|---|
| Bankruptcy where the bankruptcy petition was presented on or before the 29th December 1986 | 10% of the first £50,000 7.50% of the next £50,000 | Fee 13 in Table B in the Schedule to the Bankruptcy Fees Order 1984 (as amended) |
| Bankruptcy where the bankruptcy order was made before 1st April 2004 | 15% of the first £50,000 11.25% of the next £50,000 | Fee 13 in Part 2 of the Schedule to the Insolvency Fees Order 1986 (as amended) |
| Compulsory winding up where the petition was presented on or before 29th December 1986 | 10% of the first £50,000 7.50% of the next £50,000 | Fee 3 in the Schedule to the Department of Trade and Industry Fees Order 1985 (as amended) |
| Compulsory winding up where the winding-up order was made before 1st April 2004 | 15% of the first £50,000 11.25% of the next £50,000 | Fee 10 in Part 1 of the Schedule to the Insolvency Fees Order 1986 (as amended) |
No regulatory impact assessment has been prepared for this Order.