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Section 189: Interest on debts.

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part IV: Winding Up of Companies Registered under the Companies Acts — Chapter VIII: Provisions of General Application in Winding Up

In a winding up interest is payable in accordance with this section on any debt proved in the winding up, including so much of any such debt as represents interest on the remainder.

Any surplus remaining after the payment of the debts proved in a winding up shall, before being applied for any other purpose, be applied in paying interest on those debts in respect of the periods during which they have been outstanding since the company went into liquidation.

All interest under this section ranks equally, whether or not the debts on which it is payable rank equally.

The rate of interest payable under this section in respect of any debt ("the official rate" for the purposes of any provision of this Act in which that expression is used) is whichever is the greater of—

the rate specified in section 17of the Judgments Act 1838 on the day on which the company went into liquidation, and
the rate applicable to that debt apart from the winding up.

In the application of this section to Scotland—

references to a debt proved in a winding up have effect as references to a claim accepted in a winding up, and
the reference to section 17 of the Judgments Act 1838 has effect as a reference to the rules.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.