What is the percentage of realisations that will be deducted as an ad valorem fee from asset realisations that are paid into the Insolvency Services Account by a compulsory liquidator, where the compulsory liquidation commenced on 7 December 2009 and followed an administration commencing on 2 October 2008?

Where a company enters compulsory or provisional liquidation or an individual is made bankrupt, the Official Receiver acts as a permanent or ‘interim’ office-holder of the insolvent estate. Accordingly, certain fees, levies and charges are payable to the Insolvency Service, historically as a payment to HM Treasury, now to seek to defray the Official Receiver’s costs in administering the estate.

Historically, regardless of whether the Official Receiver remained in office (or, more likely, the case was transferred to an insolvency practitioner to manage), the estate was obliged to pay Secretary of State (SOS) fees to the Insolvency Service on all realisations.

SOS fees are paid from certain insolvent estates to meet the ongoing costs of the Official Receivers’ operations, and have, over the years, been periodically restructured, most recently in July 2016.

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