Liquidator remuneration and expenses in CVL, MVL and compulsory winding up: approval, SIP 9, fee estimates, challenges and ranking (England and Wales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

How is a liquidator’s remuneration determined?

Remuneration for an insolvency office-holder (in whatever capacity they are appointed) is determined under the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. In addition, office-holders should have regard to the Statements of Insolvency Practice (SIPs), which provide guidance on the basis of remuneration to be used. Any court considering the question of office-holder remuneration will apply part six of the Practice Direction on Insolvency Proceedings (PDIP), and this should also be taken into account by office-holders in practice.

Fees can be fixed either:

as a percentage of the value of the assets which are realised, distributed or both realised and distributed
by reference to the time properly spent by the office-holder and the office-holder’s staff in attending to matters arising in the liquidation
as a set (fixed) amount, or
as a combination of all three

In a members’ voluntary liquidation (MVL), it is for the company in a general meeting to determine the basis of remuneration. In practice, with an MVL the work is typically carried out on a fixed fee basis and agreed in advance. In both a creditors’ voluntary liquidation (CVL) and...

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Web page updated on 29/05/2026

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