Section 176

This section applies where a company is being wound up by the court in England and Wales, and is without prejudice to section 128 (avoidance of attachments, etc.). Subsection (2A) applies where— in the period of 3 months ending with the date of the winding-up order. any person (whether or not a landlord or person entitled to rent) has distrained upon the goods or effects of the company, or Her Majesty's Revenue and Customs has been paid any amount from an account of the company under Part 1 of Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by deduction from accounts), Where this subsection applies— is charged for the benefit of the company with the preferential debts of the company to the extent that the company's property is for the time being insufficient for meeting those debts. in a case within subsection (2)(a), the goods or effects, or the proceeds of their sale, and in a case within subsection (2)(b), the amount in question, Where by virtue of a charge under subsection (2A) any person surrenders any goods or effects to a company or makes a payment to a company, that person ranks, in respect of the amount of the proceeds of sale of those goods or effects by the liquidator or (as the case may be) the amount of the payment, as a preferential creditor of the company, except as against so much of the company’s property as is available for the payment of preferential creditors by virtue of the surrender or payment.

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Source: legislation.gov.uk · retrieved 2026-09-04