Insolvency Act 1985

PART I List of Preferential Debts

Debts due to Inland Revenue

1 (1) Sums due at the relevant date from the debtor on account of deductions of income tax from emoluments paid during the period of twelve months next before that date, being deductions which the debtor was liable to make under section 204 of the [1970 c. 10.] Income and Corporation Taxes Act 1970 (pay as you earn) less the amount of the repayments of income tax which the debtor was liable to make during that period.

(2) Sums due at the relevant date from the debtor in respect of such deductions as are required to be made by the debtor for that period under section 69 of the [1975 c. 45.] Finance (No. 2) Act 1975 (subcontractors in the construction industry).

Debts due to Customs and Excise

2 (1) Any value added tax which is referable to the period of six months next before the relevant date.

(2) The amount of any car tax which is due at the relevant date from the debtor and which became due within a period of twelve months next before that date.

(3) Any amount which is due—

(a) by way of general betting duty or bingo duty ; or

(b) under section 12(1) of the [1981 c. 63.] Betting and Gaming Duties Act 1981 (general betting duty and pool betting duty recoverable from agent collecting stakes); or

(c) under section 14 of, or Schedule 2 to, that Act (gaming licence duty),

from the debtor at the relevant date and which became due within the period of twelve months next before that date.

Social security contributions

3 (1) All sums which on the relevant date are due from the debtor on account of Class 1 or Class 2 contributions under the [1975 c. 14.] Social Security Act 1975 or the [1975 c. 15.] Social Security (Northern Ireland) Act 1975 and which became due from the debtor in the twelve months next before the relevant date.

(2) All sums which on the relevant date have been assessed on and are due from the debtor on account of Class 4 contributions under either of the said Acts of 1975, being sums which—

(a) are due to the Commissioners of Inland Revenue (rather than to the Secretary of State or a Northern Ireland department) ; and

(b) are assessed on the debtor up to 5th April next before the relevant date,

but not exceeding, in the whole, any one year's assessment.

Contributions to occupational pension schemes etc.

4 Any sum which is owed by the debtor and is a sum to which Schedule 3 to the [1975 c. 60.] Social Security Pensions Act 1975 (contributions to occupational pension scheme and state scheme premiums) applies.

Remuneration of employees etc.

5 (1) So much of any amount which—

(a) is owed by the debtor to a person who is or has been an employee of the debtor ; and

(b) is payable by way of remuneration in respect of the whole or any part of the period of four months next before the relevant date,

as does not exceed such amount as may be prescribed by order made by the Secretary of State.

(2) An amount owed by way of accrued holiday remuneration, in respect of any period of employment before the relevant date, to a person whose employment by the debtor has been terminated, whether before, on or after that date.

(3) So much of any sum owed in respect of money advanced for the purpose as has been applied for the payment of a debt which, if it had not been paid, would have been a debt failing within subparagraph (1) or (2) above.

6 So much of any amount which—

(a) is ordered, whether before or after the relevant date, to be paid by the debtor under the [1985 c. 17.] Reserve Forces (Safeguard of Employment) Act 1985 ; and

(b) is so ordered in respect of a default made by the debtor before that date in the discharge of his obligations under that Act,

as does not exceed such amount as may be prescribed by order made by the Secretary of State.