The Insolvency Proceedings (Fees) Order 2016

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes new provision for charging fees in respect of insolvency proceedings in England and Wales under the Insolvency Act 1986.

The Order revokes the Insolvency Proceedings (Fees) Order 2004 (“the 2004 Order”), simplifies the fee structure by reducing the number of different fees and replaces the Secretary of State’s administration fee with an official receiver’s general fee. It also introduces a trustee in bankruptcy fee and a liquidator fee, such fees being charges where the official receiver realises assets of the insolvent estate while acting in the capacity of a trustee in bankruptcy or liquidator.

Article 3 of, and Schedule 1 to, the Order set out the fees payable: for applications for debt relief orders and bankruptcy orders; following the making of a bankruptcy order and winding up order by the court; where the official receiver realises assets acting as a trustee in bankruptcy or liquidator; and for the making or entering into an income payment agreement.

Article 4 makes provision for the payment of a deposit as security against payment of fees and the circumstances in which it will be returned to the person who paid it.

Article 5 sets out when VAT must be paid on fees.

Article 6 revokes the Insolvency Proceedings (Fees) Order 2004 S.I. 2004/593 and amending Orders to that Order.

Article 7 is a transitional provision. This Order does not apply to fees due in respect of bankruptcy orders and winding up orders made following a bankruptcy application made or petition presented before the commencement date, any deposit paid on the making of a bankruptcy application or the presentation of a petition before the commencement date or the fees payable in respect of a report prepared under section 274 of the Insolvency Act 1986.

A full impact assessment of the effect that the instrument will have on the costs of business and the voluntary sector is available from The Insolvency Service, 4 Abbey Orchard Street, London SW1P 2HT and is published on The Insolvency Service website www.gov.uk/government/organisations/insolvency-service. It is also published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.