Part 10Insolvency

Companies etc.

251 Abolition of Crown preference

(1)

The following paragraphs of Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) shall cease to have effect—

(a)

paragraphs 1 and 2 (debts due to Inland Revenue),

(b)

paragraphs 3 to 5C(debts due to Customs and Excise), and

(c)

paragraphs 6 and 7(social security contributions).

(2)

The following paragraphs of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (c. 66) (list of preferred debts) shall cease to have effect—

(a)

paragraph 1 (debts due to Inland Revenue),

(b)

paragraph 2 (debts due to Customs and Excise), and

(c)

paragraph 3 (social security contributions).

(3)

In section 386 of the Insolvency Act 1986 (categories of preferential debts) for the parenthetical words after “Schedule 6 to this Act” there shall be substituted “ (contributions to occupational pension schemes; remuneration, &c. of employees; levies on coal and steel production) ”.