Fixed Charge
A security interest that attaches to a specific, identified asset — such as land, machinery, or particular book debts. The chargor cannot deal with the asset without the chargee's consent, and fixed charges generally take priority over floating charges in an insolvency.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
HMRC's enforcement guidance draws the contrast with a floating charge directly, by focusing on the loss of freedom that a fixed charge imposes: 'The fixed charge usually attaches to specific assets that a company cannot dispose of without the consent of the debenture holder even in the normal course of business.' That restriction — needing consent even for ordinary business dealings — is what distinguishes a fixed charge from a floating one.
The guidance also gives a practical sense of what tends to be caught by a fixed charge rather than a floating one: assets that are 'the larger and more durable items including property and book debts', which 'are often listed in a schedule' in the debenture document itself, though a fixed charge can in principle extend to a wider category such as 'all plant, machinery and vehicles'. Because a fixed charge locks down a specific asset rather than a fluctuating pool, it generally gives the lender stronger protection on the company's insolvency than a floating charge over the same kind of property would.
Related terms
Official sources
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