The Insolvency Proceedings (Fees) (Amendment) Order 2008

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes amendments to the Insolvency Proceedings (Fees) Order 2004 (S.I. 2004/593) (“the principal Order”).

As a consequence of the increase in the deposit (see below) payable in respect of a bankruptcy petition presented under section 264(1) of the Insolvency Act 1986, article 2(2) of the Order increases to an equivalent amount the fee to be paid to an insolvency practitioner appointed by the court under section 273(2) of that Act to prepare a report under section 274 of that Act.

Article 2(3) increases the amount of the various deposits payable pursuant to article 6 of the principal Order.

Article 2(4) makes various amendments to the Table of Fees in Schedule 2 to the principal Order. The maximum fee which may be charged by the Secretary of State for the performance of his general duties under the insolvency legislation relating to bankruptcy (fee B2) or winding up by the court (fee W2) is reduced from £100,000 to £80,000. A transitional provision is included in the Order to ensure that any liability which accrues prior to 6^th April 2008 to pay a fee in excess of £80,000 because of the level of total chargeable receipts immediately prior to that date is not reduced on or after that date by the reduction of the maximum fee from £100,000 to £80,000. The fee for the performance by the official receiver of his general duties as official receiver on the making of a winding up order (fee W1) is increased from £2,090 to £2,160.

Article 3 contains transitional provisions.

No regulatory impact assessment has been prepared for this Order.