Under section 176A of the Insolvency Act 1986 and the Insolvency Act 1986 (Prescribed Part) Order 2003 (SI 2003/2097), the prescribed part is the part of the proceeds that must be set aside and made available in some circumstances to satisfy unsecured debts on realising assets covered by a floating charge.

The prescribed part is calculated as a percentage of the value of the company's property which is subject to a floating charge namely, 50% of the first £10,000 of net floating charge realisations plus 20% of anything thereafter, subject to a maximum prescribed part of £800,000 where the first ranking floating charge was created on or after 6 April 2020 (£600,000 if created before then).

For more information, see Practice note, The prescribed part in corporate insolvency proceedings.