Following commencement of the Enterprise Act corporate insolvency provisions The Insolvency Service will be putting in place arrangements to evaluate their effectiveness.

One of the areas where we propose to monitor the effectiveness of the new provisions is that relating to the prescribed part following the abolition of crown preference, to ascertain whether the calculation has been set at the correct level. The level at which the prescribed part has been set was calculated to realise  funds for unsecured creditors equivalent to those being given up by the crown through the abolition of its preferential status.

Although the prescribed part does not apply to charges created before 15 September 2003, we propose to monitor, over the first 3 years, of operation of the new provisions, what the prescribed part would have delivered in all cases where there are floating charges so as to get an early indication as to whether it has been set at the right level.

We would appreciate the assistance of IPs in this process by completing a simple form and returning it to us in all cases where there is floating charge and the appointment was on or after 1 April 2003.

Please click the link below for a copy of this form:

[Prescribed Part Evaluation Form]

This form is also available on written request from Prescribed Part Evaluation, Policy Unit, The Insolvency Service, Area 5.7, 21 Bloomsbury Street, London, WC1B 3QW.

Please return completed forms by email to tom.phillips@insolvency.gsi.gov.uk or by post to Enterprise Bill Evaluation, Policy Unit, Insolvency Service, Area 5.7, 21 Bloomsbury Street, London, WC1B 3QW.

If you have any queries regarding completion of the forms or regarding the evaluation process please email or write to the address above or telephone Tom Phillips on 020 7291 6733 or click the link below for answers to frequently asked questions.

[Frequently asked questions]