In insolvency, a debt that has statutory priority over other unsecured debts and (in corporate insolvencies) over debts owed to floating charge holders and the prescribed part (Schedule 6 and sections 175, 176, 328, 347 and 386, Insolvency Act 1986). There are a number of different rankings and categories given to such claims. Such claims include some employee claims, contributions to pension schemes and tax liabilities. There are special rules for the winding up of financial institutions (sections 176AZA and 387A, IA 1986).

For more information on preferential debts in corporate insolvencies, see Practice note, How are assets distributed to creditors in corporate insolvency procedures?: Preferential creditors.