Powered by Lexis+®
Jurisdiction(s):
United Kingdom
CASE STUDY

“I'm able to do more in the day, which means I'm providing more value to my clients - and it's helped my margins in terms of how much I can bill. LexisNexis is helping me make money.”

ParrisWhittaker

Access all documents on Prescribed part

Prescribed part meaning

What does Prescribed part mean?
An amount ring‑fenced from assets subject to floating charges and reserved for unsecured creditors in corporate insolvency practice. In England & Wales and Scotland this is a statutory concept under Insolvency Act 1986, s 176A, with the calculation set by the Prescribed Part Order 2003 (as amended). The administrator or liquidator sets aside a share of the “net property” subject to floating charges and distributes it pari passu to unsecured creditors. Key features: - Applies where there is a floating charge created on or after 15 September 2003. - Calculated as 50% of the first £10,000 of net property and 20% of the balance, subject to a cap (currently £800,000 for floating charges created on/after 6 April 2020; otherwise £600,000). - The court may disapply it if the cost of distribution would be disproportionate. It ordinarily operates in administrations and liquidations. It does not generally apply in an administrative receivership, unless the company later enters administration or liquidation and a distribution to unsecured creditors is made. Northern Ireland has an equivalent statutory ring‑fence under the Insolvency (Northern Ireland) Order 1989. There is no direct prescribed part mechanism in the Republic of Ireland; unsecured creditor distributions follow the priority rules in the Companies Act 2014.
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

View the related Checklists about Prescribed part

CHECKLISTS
Employment Tribunal Claims: Mandatory Acas Early Conciliation Compliance Flowchart—time limits, prescribed information, conciliation period and outcomes (England, Scotland and Wales)

The early conciliation (EC) requirement Also referred to as mandatory Acas early conciliation, this duty requires a prospective claimant to supply certain information to Acas before submitting a claim in the employment tribunal, as part of the EC requirement procedure...

Read More Right Arrow
CHECKLISTS
CPR Part 36 acceptance: pre-acceptance checks, acceptance steps, stay, enforcement and costs (England and Wales)

Checklist on accepting Part 36 offers This checklist on accepting Part 36 offers sets out the principal considerations when deciding to accept a Part 36 offer, together with the potential steps that may follow acceptance, including enforcing the Part 36 offer. For the purposes of this checklist, it is assumed the offer has been made pursuant to CPR 36.1 to CPR 36.17 and does not concern a claim falling under CPR 36.18 onwards (ie personal injury, RTA protocol and EL/PL protocol settlement offers). Please note, this checklist does not address the particular Part 36 provisions that apply solely to fixed costs matters. For details of the Part 36 consequences for fixed costs cases issued on or after 1 October 2023, see Practice Note: Part 36 offers—fixed costs (position on or after 1 October 2023). Pre-acceptance Validity of Part 36 offer Before choosing whether to accept a Part 36 offer, ensure the offer is a compliant Part 36 offer so that the prescribed Part 36 costs...

Read More Right Arrow
CHECKLISTS
Archived: Brexit—Restructuring and Insolvency forms pre- and post-IP completion day for administration, liquidation, bankruptcy, special administrations and cross-border insolvency (CBIR) in England and Wales, and Scotland

Brexit—R&I forms for use pre- and post-IP completion day [ARCHIVED] This Checklist is archived and is no longer being maintained. On 30 January 2019, the Insolvency (Amendment) (EU Exit) Regulations 2019 (the Insolvency Brexit Regulations), SI 2019/146, were laid under the affirmative procedure for Brexit statutory instruments to remedy deficiencies arising from the loss of mutual application of Regulation (EU) 2015/848 (OJ L141/19), the Recast Insolvency Regulation, and to make consequential amendments across related legislation. The instrument took effect in part from 31 January 2019 and in full from IP completion day, defined as 11.00 pm on 31 December 2020. The changes to the legislative framework include revisions to the prescribed information that must be supplied under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, on the appointment of an insolvency office-holder. In many instances, the amendments correspond to the revised jurisdictional gateways for commencing a range of insolvency proceedings...

Read More Right Arrow

View the related Flowcharts about Prescribed part

FLOWCHARTS
Unopposed business tenancy renewal under the Landlord and Tenant Act 1954: notices, statutory periods and Part 8 procedure (England and Wales)

Under the Landlord and Tenant Act 1954 (LTA 1954), a business lease carries on automatically after the end of the contractual term if the tenant remains in occupation for business purposes. Either party can bring those statutory rights to an end by serving one of the prescribed termination notices. This flowchart explains the steps for an unopposed business lease renewal under the LTA 1954. For the procedure where renewal is opposed, see: LTA 1954 opposed lease renewal procedure—flowchart. For further detail on LTA 1954 security of tenure and the court process, consult Practice Notes: LTA 1954 business lease renewal—proceedings and LTA 1954 business lease renewal—termination. Note 1 Diarise a date at least 12–18 months before the contractual expiry of the existing lease. See Practice Note: LTA 1954 business lease renewal—termination. Note 2 Information must be supplied within one month of service of the notice. A party is obliged to correct any information provided for six months after receiving the notice. This applies to both parties equally...

Read More Right Arrow

View the related News about Prescribed part

NEWS
Workplace Drug Misuse in Great Britain: HSWA 1974, MDA 1971, PSA 2016, Equality Act 2010—Employer Duties, Disciplinary versus Support, and Policy Essentials

What is the current legislation/regulation relating to drug misuse in the workplace and does this go far enough? Is there any guidance available for employers? Employers are legally required, under the Health and Safety at Work etc Act 1974, to safeguard the health, safety and welfare of their workforce so far as is reasonably practicable. The Management of Health and Safety at Work Regulations 1999 (SI 1999/3242) add a duty to identify and evaluate risks to employees’ health and safety. Where an employer knowingly permits someone to work while impaired by drugs or alcohol, and that behaviour endangers them or others, the employer may face prosecution. Workers, for their part, must also exercise reasonable care for their own safety and for anyone who could be affected by what they do—or fail to do—at work. The Misuse of Drugs Act 1971 is the key UK statute governing drug misuse. It renders the production, supply and possession of controlled drugs unlawful, save for defined exceptions, such as...

Read More Right Arrow
NEWS
Avanti: High Court clarifies control threshold for fixed charges under English law; rejects total-prohibition requirement, upholds fixed security over satellite assets; HMRC priority and completion-structure implications

Re Avanti Communications Ltd [2023] EWHC 940 (Ch) This marks the first substantial judgment on the divide between fixed and floating charges since the House of Lords’ landmark ruling in Re Spectrum Plus [2005] UKHL 41, which reclassified an apparent fixed charge over book debts as floating because the chargor could freely deploy the charged assets and the security holder therefore lacked the requisite control to constitute a fixed charge. The designation of security as ‘fixed’ or ‘floating’ under English law now carries even greater weight given HMRC (the UK tax authority) ranks as a preferential creditor for certain taxes in insolvency—ie those taxes sit behind fixed charge realisations but ahead of floating charge realisations. That characterisation had a decisive effect on the order of payments in Avanti’s administration: as the charge was properly treated as fixed, the secured creditors recovered in full; had it instead been treated as floating, part of the proceeds would have been payable to HMRC (as preferential creditor) and to unsecured creditors up to...

Read More Right Arrow
NEWS
AP Wireless v On Tower: Upper Tribunal clarifies lease/licence for telecoms sites—exclusive possession and certainty of term decide Code or LTA 1954 renewal/termination routes

AP Wireless II (UK) Ltd v On Tower UK Ltd [2024] UKUT 263 (LC) What are the practical implications of this case? This ruling provides vital guidance on handling telecommunications arrangements when reviewing those already in place. Identifying whether a subsisting arrangement is controlled by the LTA 1954 or by the Electronic Communications Code determines the form of notice required for termination or renewal. When advising for either Operators or Site Providers who intend to initiate the renewal or bring to an end their existing telecommunications arrangements, it is essential to determine whether the arrangement is a lease or a licence. A licence is one caught by the Code and demands service of the prescribed notice in accordance with the Code. Examining the duration and whether there is exclusive possession will indicate the probable route and procedure for renewing or ending arrangements. A fixed, certain term will commonly suggest that a lease has been granted, in which circumstance Part 5 of the Code may not be engaged...

Read More Right Arrow

View the related Practice Notes about Prescribed part

PRACTICE NOTES
Tenancy deposit protection for ASTs in England under the Housing Act 2004: scheme types, prescribed information, compliance, penalties and section 21 restrictions

Deposits requested by landlords and letting agents for certain residential tenancies must be safeguarded by a tenancy deposit scheme (TDS), whether insurance-based or custodial. This Practice Note outlines the purpose of the deposit legislation, the obligations on landlords, the financial penalties for non-compliance, and the limits on regaining possession. The deposit regime All deposits taken by landlords for residential assured tenancies (ATs) in England must be protected under a TDS. Transitional provisions exempt tenancies that were non-shorthold ATs before 1 May 2026. The parties cannot contract out of these duties. There are two forms of TDS: insurance-based schemes and custodial schemes. They are intended to: allow tenants to recover all or part of their deposit when they are entitled to it and make any disputes easier to resolve encourage landlords and tenants to agree clearly from the outset on the property's condition so that a landlord is not left out of pocket when the tenancy expires and the tenant leaves ...

Read More Right Arrow
PRACTICE NOTES
Employee study or training requests: eligibility, procedure, grounds for refusal, right to be accompanied, appeals, protections and remedies (Great Britain)

Certain specified employees have the statutory right to make a request to undertake study or training This entitlement applies to employees working for organisations with 250 or more staff who meet the qualifying service requirement (see: Eligibility and qualifying period, below). Although the scheme was originally intended to be broadened to include smaller employers, the government deferred that step to allow further evaluation of the likely impact on small businesses, and there are currently no plans to proceed with any extension. The approach to counting the number of employees for these purposes is prescribed by the Apprenticeships, Skills, Children and Learning Act 2009 (Commencement No 2 and Transitional and Saving Provisions) Order 2010 (Commencement No 2 Order 2010), SI 2010/303. For a pro-forma policy aligned with the statutory arrangements, see Precedent: Policy—time off work for study and training. Official guidance on this right can be found on the GOV.UK website. The legal position on study or training rights and obligations for young employees is distinct from that applicable...

Read More Right Arrow
PRACTICE NOTES
Building Safety Act 2022 Part 4 (England): occupied higher‑risk buildings—Accountable Persons, registration, completion certificates, safety case and golden thread, residents’ engagement, reporting, assessment certificates and enforcement

BSA 2022, Pt 4 The Building Safety Act 2022 (BSA 2022) delivered far-reaching reforms to the legal framework and regulation of building safety, intended to ‘secure the safety of people in or about buildings and improve the standard of buildings’. Parts 3 and 4 of BSA 2022 establish the architecture for a new regulatory system governing ‘higher-risk buildings’ (HRBs). Under Pt 3, a strict building control regime was introduced for the design and construction stages of HRBs. Pt 4 imposes duties on those responsible for occupied HRBs, covering risk management and reporting. Collectively, these requirements are known as the ‘HRB regime’. This Practice Note examines BSA 2022, Pt 4, which sets out the arrangements for managing building safety risks in occupied HRBs in England. BSA 2022, Pt 4 does not extend to HRBs in Wales. For analysis of the Welsh position on HRBs, see Practice Note: Building and Fire Safety—the position in England, Scotland and Wales...

Read More Right Arrow

View the related Precedents about Prescribed part

PRECEDENTS
Lease of bare land to telecommunications operator under the legacy Electronic Communications Code: archived precedent (England and Wales)

LR1. Date of the lease [ enter the date in full format DD-Month-Year ] LR2. Title Number[s] LR2.1 Landlord's title number [ s ] [ the title numbers from which this lease is granted. Leave blank if unregistered ] LR2.2 Other title numbers [ existing title number [ s ] against which entries relating to LR9, LR10, LR11 and LR13 are to be made ] LR3. Parties to this lease Landlord [ enter landlord's name and address ] Tenant [ enter tenant's name and address ] Other parties LR4. Property Where this clause conflicts with any other part of the lease, then, for registration purposes, this clause shall take precedence. [ enter details of the Property ] LR5. Prescribed statements etc LR5.1 Statements prescribed under rules 179 (dispositions in favour of a charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing and Urban...

Read More Right Arrow
PRECEDENTS
Template supplemental short-form lease incorporating original lease by reference, with HM Land Registry prescribed clauses, guarantor provisions and optional Landlord and Tenant Act 1954 exclusion (England and Wales)

HM Land Registry Prescribed Clauses LR1. Date of the lease [ date ] LR2. Title Number[s] LR2.1 Landlord’s title number[s] [ title numbers from which this lease is granted. Leave blank if unregistered. ] LR2.2 Other title numbers [ existing title number[s] against which notes of matters mentioned in LR9, LR10, LR11 and LR13 are to be entered. ] LR3. Parties to this lease Landlord [ name of Landlord ] [ of OR incorporated in England and Wales, company registration number [ number ], whose registered office is at ] [ address ] Tenant [ name of Tenant ] [ of OR incorporated in England and Wales, company registration number [ number ], whose registered office is at ] [ address ] Other parties [ Guarantor [ name of Guarantor ] [ of OR incorporated in England and Wales, company registration number [ number ], whose registered office is at ] [...

Read More Right Arrow
PRECEDENTS
Practitioner drafting notes: Section 26 tenant’s request for a new business tenancy (LTA 1954)—England and Wales

Tenant’s request for a new business tenancy Use these drafting notes when preparing a tenant’s application for a new business tenancy pursuant to the Landlord and Tenant Act 1954; for use when completing and finalising the request form. They are designed for completing the prescribed form under the Landlord and Tenant Act 1954, Part 2 (Notices) Regulations 2004, SI 2004/1005, which is available here. As good practice, serve the notice in duplicate and request that the recipient endorses and returns the duplicate to confirm receipt. The parties Ensure the notice is issued by, and served upon, the correct parties...

Read More Right Arrow

View the related Q&As about Prescribed part

Q&As
RTM Wales: Withdrawal of Notice of Claim - Form, Costs, Re-serving

This query raises the effect of a notice of claim to exercise the right to manage under Part 2 of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002) being withdrawn. Although the grounds for withdrawal are unknown, the parties’ rights and duties under CLRA 2002 remain unchanged. Under CLRA 2002, s 71(1), the right to manage the premises is conferred on a company incorporated for that function. Such an entity is termed a right to manage (RTM) company (CLRA 2002, s 73(1)). Only one RTM company may exist at a time, and where the freehold of the managed premises becomes vested in that company, it stops being an RTM company (CLRA 2002, s 73(4)–(5)). Holders of long leases within the building may join the RTM company (CLRA 2002, ss 74–75). These individuals are described as qualifying tenants. To assert the right to manage, the RTM company must serve a ‘claim notice’ (CLRA 2002, s 79(1)). Prior to doing so, at least 14 days in advance, the RTM company...

Read More Right Arrow
Q&As
RTA pre‑issue Part 36 acceptance post‑expiry: costs despite no stage, set‑off from damages

For this Q&A, it is assumed that the claim continues within the Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents (the Protocol). Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents (the Protocol) Under paragraph 3.1, the Protocol’s objectives are to ensure that: the defendant meets damages and costs through the process prescribed by the Protocol, without the claimant having to issue proceedings; damages are paid within a reasonable period; and the claimant’s legal representative is paid the fixed costs at each relevant stage. Accordingly, the aims do not extend to circumstances in which a defendant may recover costs...

Read More Right Arrow