Crown preference
Rules giving certain debts owed to HMRC preferential status in insolvency, meaning they rank ahead of ordinary unsecured creditors for relevant distributions.
Related terms
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Preferential creditor
A creditor given statutory priority for certain debts in insolvency, ranking ahead of ordinary unsecured creditors.
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Secondary preferential creditor
A creditor whose claim is given a lower level of preferential priority than ordinary preferential debts but still ranks ahead of unsecured creditors where the statutory rules apply.
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Prescribed part
A ring-fenced portion of floating-charge realisations in certain company insolvencies that is made available for unsecured creditors under statutory rules.
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