The Carbon Dioxide Transport and Storage (Licensed Operators) Administration (England and Wales) Rules 2025
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Change 1
As published
42 Priority of expenses of T&S administration
(1) The expenses of the T&S administration are payable in the following order of priority—
(a) expenses properly incurred by the T&S administrator in performing the T&S administrator’s functions in the T&S administration, except for those expenses referred to in sub-paragraph (g);
(b) the cost of any security provided by the T&S administrator in accordance with the 1986 Act or these Rules;
(c) the costs of the applicant for the T&S administration order and any person appearing on the hearing of the application whose costs were allowed by the court;
(d) any amount payable to a person in respect of assistance in the preparation of a statement of affairs or statement of concurrence;
(e) any allowance made, by the order of the court, towards costs on an application for release from the obligation to submit a statement of affairs or statement of concurrence;
(f) any necessary disbursements by the T&S administrator in the course of the T&S administration (but not including any payment of corporation tax in circumstances referred to in sub-paragraph (i));
(g) the remuneration of any person who has been employed by the T&S administrator to perform any services for the T&S company, as required or authorised under the 1986 Act, the 2004 Act, the 2022 Act or these Rules;
(h) the remuneration of the T&S administrator fixed by the court under Part 8 and unpaid pre-T&S administration costs approved under rule 43;
(i) the amount of any corporation tax on chargeable gains accruing on the realisation of any asset of the T&S company, irrespective of the person by whom the realisation is effected.
(2) The priorities laid down by paragraph (1) are subject to paragraph (3) and subject to the power of the court to make orders under paragraph (5) where the assets are insufficient to satisfy the liabilities.
(3) Where there is a former T&S administrator, the items in paragraph 99 of Schedule B1 to the 1986 Act are payable in priority to the expenses in this rule.
(4) For the purposes of paragraph 99(3) of Schedule B1 to the 1986 Act, the former T&S administrator’s remuneration and expenses shall comprise all those items set out in paragraph (1)(a) to (i) of this rule.
(5) The court may, in the event of the assets being insufficient to satisfy the liabilities, make an order as to the payment out of the assets of the expenses incurred in the T&S administration in such order of priority as the court thinks just.
Your change, as a redline
42 Priority of expenses of T&S administration
(1) The expenses of the T&S administration are payable in the following order of priority—
(a) expenses properly incurred by the T&S administrator in performing the T&S administrator’s functions in the T&S administration, except for those expenses referred to in sub-paragraph (g);
(b) the cost of any security provided by the T&S administrator in accordance with the 1986 Act or these Rules;
(c) the costs of the applicant for the T&S administration order and any person appearing on the hearing of the application whose costs were allowed by the court;
(d) any amount payable to a person in respect of assistance in the preparation of a statement of affairs or statement of concurrence;
(e) any allowance made, by the order of the court, towards costs on an application for release from the obligation to submit a statement of affairs or statement of concurrence;
(f) any necessary disbursements by the T&S administrator in the course of the T&S administration (but not including any payment of corporation tax in circumstances referred to in sub-paragraph (i));
(g) the remuneration of any person who has been employed by the T&S administrator to perform any services for the T&S company, as required or authorised under the 1986 Act, the 2004 Act, the 2022 Act or these Rules;
(h) the remuneration of the T&S administrator fixed by the court under Part 8 and unpaid pre-T&S administration costs approved under rule 43;
(i) the amount of any corporation tax on chargeable gains accruing on the realisation of any asset of the T&S company, irrespective of the person by whom the realisation is effected.
(2) The priorities laid down by paragraph (1) are subject to paragraph (3) and subject to the power of the court to make orders under paragraph (5) where the assets are insufficient to satisfy the liabilities.
(3) Where there is a former T&S administrator, the items in paragraph 99 of Schedule B1 to the 1986 Act are payable in priority to the expenses in this rule.
(4) For the purposes of paragraph 99(3) of Schedule B1 to the 1986 Act, the former T&S administrator’s remuneration and expenses shall comprise all those items set out in paragraph (1)(a) to (i) of this rule.
(5) The court may, in the event of the assets being insufficient to satisfy the liabilities, make an order as to the payment out of the assets of the expenses incurred in the T&S administration in such order of priority as the court thinks just.
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