The Insolvency (England and Wales) Rules 2016

Property to be excluded in determining the value of a debtor’s property

9.9.—(1) For the purposes of determining the value of a person’s property under rule 9.8, the official receiver must disregard—

(a) a single domestic motor vehicle belonging to or vested in the debtor if—

(i) it has been especially adapted for use by the debtor because of a physical impairment that has a substantial and long-term adverse effect on the debtor’s ability to carry out normal day-to-day activities, subject to paragraph (2), or

(ii) the maximum potential realisable value of the vehicle is less than £1,000 (the prescribed amount);

(b) subject to paragraph (3), such tools, books and other items of equipment as are necessary to the debtor for use personally in the debtor’s employment, business or vocation;

(c) subject to paragraph (3), such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the debtor and the debtor’s family;

(d) property held by the debtor on trust for any other person;

(e) the right of nomination to a vacant ecclesiastical benefice;

(f) a tenancy which is an assured tenancy or an assured agricultural occupancy, within the meaning of Part 1 of the Housing Act 1988(1), and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977(2);

(g) a protected tenancy, within the meaning of the Rent Act 1977, in relation to which, by virtue of any provision of Part 9 of that Act, no premium can lawfully be required as a condition of assignment;

(h) a tenancy of a dwelling-house by virtue of which the debtor is, within the meaning of the Rent (Agriculture) Act 1976(3), a protected occupier of the dwelling-house, and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977;

(i) a secure tenancy, within the meaning of Part 4 of the Housing Act 1985(4), which is not capable of being assigned, except in the cases mentioned in section 91(3) of that Act; and

(j) any right of the debtor under an approved pension arrangement (as defined by section 11 of the Welfare Reform and Pensions Act 1999 (5)).

(2) The amount the official receiver must disregard under paragraph (1)(a)(i) is limited to the value of a reasonable replacement where it appears to the official receiver that the realisable value of the vehicle to be disregarded exceeds the cost of a reasonable replacement for it.

(3) The amount the official receiver must disregard under paragraph (1)(b) or (c) is limited to the value of a reasonable replacement where it appears to the official receiver that the realisable value of the whole or a part of the property to be disregarded exceeds the cost of a reasonable replacement for that property or that part.

(4) A vehicle or other property is a reasonable replacement if it is reasonably adequate for meeting the needs met by the other vehicle or other property.

(1)

1998 c.50.

(2)

1977 c.42.

(3)

1976 c.80.

(4)

1985 c.68.

(5)

1999 c 30; section 11 is amended by S.I. 2006/745.