(1)The following paragraphs of Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) shall cease to have effect—
(a)paragraphs 1 and 2 (debts due to Inland Revenue),
(b)paragraphs 3 to 5C (debts due to Customs and Excise), and
(c)paragraphs 6 and 7 (social security contributions).
(2)The following paragraphs of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (c. 66) (list of preferred debts) shall cease to have effect—
(a)paragraph 1 (debts due to Inland Revenue),
(b)paragraph 2 (debts due to Customs and Excise), and
(c)paragraph 3 (social security contributions).
(3)In section 386 of the Insolvency Act 1986 (categories of preferential debts) for the parenthetical words after “Schedule 6 to this Act” there shall be substituted “(contributions to occupational pension schemes; remuneration, &c. of employees; levies on coal and steel production)”.