What is the difference between fixed and floating charges over assets?

A fixed charge attaches to specific assets with restrictions on dealing with them. A floating charge covers changing asset pools, such as stock, and crystallises in certain events.

Can equipment and machinery be secured?

Yes. Plant, machinery, vehicles, computers and other business equipment are commonly included, either as specific secured assets or within a broader debenture.

Can inventory be included in a security agreement?

Yes. Inventory and stock are often covered by a floating charge because they change regularly and are sold in the ordinary course of business.

Can shares be covered by a UK security agreement?

Yes. Shares and other securities can be charged, often with supporting documents such as share certificates, stock transfer forms and notices where appropriate.

Can intellectual property be secured under a debenture?

Yes. Intellectual property such as trademarks, patents, copyright, designs, domain names and goodwill can be included in a debenture or a separate IP security agreement.

Can contractual rights be covered by a UK security agreement?

Often, yes. Rights under contracts, licences, insurance policies and other agreements may be secured, subject to any assignment restrictions or consent requirements.

Why do asset classes matter in a UK security agreement?

Asset classes matter because they determine the type of security, required controls, perfection steps and registrations needed to make the security effective and enforceable.

Does security over different assets need to be registered?

For UK companies and LLPs, most charges must be registered at Companies House within 21 days. Other registers may also apply depending on the asset class.

Can one debenture cover all business assets?

Yes. A single UK debenture often covers multiple asset classes in one document, using a combination of fixed and floating charges.

What should I consider before creating a UK security agreement?

You should identify the borrower, lender, secured obligations, asset classes, type of charge, control arrangements, registration requirements and any third-party consents needed.

EN-GB>Finance>Debenture>UK Security Agreement Asset Classes

Asset Classes Commonly Covered By A UK Security Agreement

Created: 10 Jun 2026

This article outlines the key asset classes typically included in a UK security agreement, helping lenders, borrowers, and legal teams understand how security interests may be structured. It is useful for comparing coverage, identifying relevant collateral, and preparing related documents within the AI Generated British Debenture category.

Asset Examples	Common Security Form	Perfection or Notice Requirements	Practical Complexity	Common Limitations
Freehold real property
Offices, warehouses, retail units, development land.	Legal mortgage Fixed charge	Register at Companies House within 21 days register charge at HM Land Registry.	Medium	Title defects, prior charges, planning restrictions and environmental liabilities.
Leasehold real property
Long leases, occupational leases, ground leases.	Legal mortgage Fixed charge	Companies House filing HM Land Registry registration landlord consent may be needed.	High	Alienation restrictions, forfeiture risk, short lease term and landlord consent conditions.
Unregistered land
Older freehold or leasehold titles not yet registered.	Legal mortgage Equitable mortgage	Companies House filing land charges registration may be required.	High	Title investigation burden and risk of undisclosed interests.
Book debts and trade receivables
Customer invoices, accrued revenue, retention sums.	Assignment by way of security Fixed charge Floating charge	Companies House filing debtor notices for legal assignment and priority.	High	Anti-assignment clauses, set-off, dilution and collection control issues.
Intra-group receivables
Intercompany loans, management charges, group cash pooling balances.	Assignment by way of security Fixed charge	Companies House filing notice to group debtor usually needed for legal assignment.	Medium	Subordination, set-off, tax and corporate benefit issues.
Bank accounts
Current accounts, deposit accounts, reserve accounts.	Fixed charge Floating charge	Companies House filing account bank notice or control agreement commonly used.	High	True fixed charge requires control over withdrawals bank set-off rights.
Cash deposits
Blocked deposits, rent deposits, margin deposits.	Fixed charge Assignment by way of security	Companies House filing unless exempt account control or notice to deposit holder.	Medium	Withdrawal rights, bank liens, set-off and financial collateral rules.
Shares in subsidiaries
Certificated shares in private or public companies.	Equitable mortgage Fixed charge	Companies House filing hold certificates and signed stock transfer forms.	Medium	Articles restrictions, pre-emption rights, financial assistance and regulatory approvals.
Listed securities
Quoted shares, listed bonds, exchange-traded instruments.	Fixed charge Other	Control arrangements, custodian notice and possible financial collateral compliance.	High	Market abuse, close-out, custody and regulatory constraints.
Partnership or LLP interests
LLP capital accounts, profit shares, partnership distributions.	Fixed charge Assignment by way of security	Companies House filing notice and consent under partnership documents.	High	Transfer restrictions, member consent and valuation uncertainty.
Plant and machinery
Production lines, machinery, tools, generators.	Fixed charge Floating charge	Companies House filing identify assets clearly check finance leases or hire purchase.	Medium	Retention of title, asset mobility, depreciation and third-party ownership.
Vehicles
Cars, vans, lorries, trailers, fleet vehicles.	Fixed charge Floating charge	Companies House filing verify title and existing asset finance.	Medium	Finance company title, rapid disposal, insurance and identification issues.
Inventory and stock
Raw materials, work in progress, finished goods.	Floating charge Fixed charge	Companies House filing fixed charge requires strict disposal controls.	High	Ordinary course sales, retention of title and fluctuating asset pool.
Raw materials and commodities
Metals, fuel, grain, chemicals, timber.	Floating charge Fixed charge	Companies House filing warehouse acknowledgements may support control.	High	Commingling, quality variation, title documents and price volatility.
Goods in transit
Shipped inventory, consigned goods, goods under bills of lading.	Fixed charge Floating charge Other	Companies House filing possession or control of documents of title may be needed.	High	Carrier liens, title retention, Incoterms and cross-border law issues.
Warehouse receipts and documents of title
Bills of lading, warehouse warrants, delivery orders.	Fixed charge Other	Companies House filing possession, endorsement or control of document.	High	Document validity, fraud risk and warehouse operator liens.
Intellectual property generally
Patents, trade marks, designs, copyright, domain names.	Fixed charge Assignment by way of security	Companies House filing consider recordal at relevant IP registry.	High	Licences, ownership gaps, overseas rights and registration defects.
Patents
UK patents, patent applications, inventions and priority rights.	Fixed charge Assignment by way of security	Companies House filing UK IPO recordal recommended for registered patent interests.	High	Co-ownership, licence rights, renewal fees and pending application risk.
Trade marks
UK marks, brand names, logos, applications.	Fixed charge Assignment by way of security	Companies House filing UK IPO recordal recommended for registrable transactions.	Medium	Brand licensing, non-use vulnerability and territory limitations.
Registered designs
UK registered designs and design applications.	Fixed charge Assignment by way of security	Companies House filing record registrable interests at UK IPO where appropriate.	Medium	Shorter commercial life, ownership chain and design validity issues.
Copyright and database rights
Software code, manuals, websites, databases, media content.	Fixed charge Assignment by way of security	Companies House filing no UK copyright register, so evidence chain is critical.	High	Employee or contractor ownership, open-source terms and moral rights.
Software and source code
Proprietary platforms, apps, source repositories, object code.	Fixed charge Assignment by way of security	Companies House filing escrow and access arrangements may be needed.	High	Third-party code, SaaS dependencies, contractor rights and cybersecurity controls.
Domain names
.uk domains, .com domains, business-critical URLs.	Fixed charge Assignment by way of security Other	Companies House filing registrar account controls or registrar notice may assist.	Medium	Registrar terms, renewal failure, transfer locks and foreign registry rules.
Contract rights
Supply contracts, service agreements, framework agreements.	Assignment by way of security Fixed charge	Companies House filing counterparty notice and consent if assignment is restricted.	High	Anti-assignment, termination rights, confidentiality and set-off.
Insurance proceeds
Property, business interruption and key asset insurance proceeds.	Assignment by way of security Fixed charge	Companies House filing notice to insurer and loss payee endorsement commonly used.	Medium	Policy terms, insurer consent, reinstatement rights and exclusions.
Rental income
Commercial rents, service charges, licence fees.	Assignment by way of security Fixed charge	Companies House filing notice to tenants for legal assignment and priority.	Medium	Tenant set-off, rent concessions and lease variation rights.
Bank guarantees and bonds
Performance bonds, retention bonds, standby letters of credit.	Assignment by way of security Fixed charge	Companies House filing issuer or beneficiary notice and consent may be required.	High	Non-transferability, demand mechanics and issuer set-off rights.
Licences and permits
Operating licences, environmental permits, software licences.	Fixed charge Assignment by way of security Other	Companies House filing regulator or licensor consent may be required.	High	Personal rights, non-transferability, revocation and regulatory approval.
Goodwill
Business reputation, customer connection, trading names.	Fixed charge Floating charge	Companies House filing usually secured as part of whole-business security.	Medium	Difficult valuation and dependence on business continuity.
Uncalled share capital
Unpaid amounts on issued shares and call rights.	Fixed charge Floating charge	Companies House filing review articles and shareholder obligations.	Medium	Articles, shareholder defences and limited practical value.
Calls on shareholders
Rights to demand unpaid share capital from members.	Fixed charge Assignment by way of security	Companies House filing notice may be given to relevant shareholders.	Medium	Constitutional restrictions and collectability concerns.
Chattels and equipment
Office equipment, furniture, IT hardware, fixtures.	Fixed charge Floating charge	Companies House filing asset schedule and serial numbers improve identification.	Low	Low resale value, rapid replacement and third-party ownership.
Fixtures
Plant attached to land, lifts, heating systems, fitted equipment.	Legal mortgage Fixed charge	Usually covered by land mortgage Companies House and land registration may apply.	Medium	Fixture versus chattel disputes and landlord ownership issues.
Agricultural assets
Crops, livestock, farm machinery, subsidy receivables.	Fixed charge Floating charge Other	Companies House filing specialist agricultural charges may require separate treatment.	High	Seasonality, animal welfare, perishability and subsidy restrictions.
Ships and vessels
Commercial vessels, workboats, yachts, fishing vessels.	Legal mortgage Fixed charge Other	Companies House filing register ship mortgage on the relevant ship register.	High	Maritime liens, flag state rules, insurance and mobility.
Aircraft
Aircraft, helicopters, engines and airframes.	Legal mortgage Fixed charge Other	Companies House filing CAA mortgage register and international filings may apply.	High	Maintenance, leasing, engine swaps, priority and international registry issues.
Rolling stock
Rail carriages, locomotives, wagons and rail equipment.	Fixed charge Other	Companies House filing asset registers, operator notices and leasing checks.	High	Leasing structures, regulatory access and cross-border movement.
Energy project assets
Solar farms, wind turbines, grid connection rights, PPAs.	Fixed charge Assignment by way of security Legal mortgage	Companies House filing land, contract and licence perfection steps often combined.	High	Grid rights, offtake terms, planning, subsidy and equipment warranties.
Data and databases
Customer lists, analytics data, CRM databases, datasets.	Fixed charge Assignment by way of security	Companies House filing assess GDPR restrictions before enforcement or transfer.	High	Privacy law, consent, confidentiality and data portability constraints.
Cryptocurrency and digital assets
Bitcoin, ether, stablecoins, exchange wallets, tokens.	Fixed charge Other	Companies House filing wallet control or custodian control is critical.	High	Private key control, volatility, custody, sanctions and tracing issues.
Carbon credits and environmental units
UK ETS allowances, voluntary carbon credits, renewable certificates.	Fixed charge Assignment by way of security Other	Companies House filing registry account control or notice often needed.	High	Scheme rules, expiry, eligibility and registry transfer restrictions.
Construction receivables
Interim payments, retention monies, final account claims.	Assignment by way of security Fixed charge	Companies House filing employer notice and contract assignment review.	High	Pay less notices, set-off, adjudication and anti-assignment clauses.
Tax refunds and claims
VAT repayments, corporation tax refunds, R&D credits.	Assignment by way of security Fixed charge	Companies House filing HMRC notice may be relevant but assignment limits apply.	Medium	HMRC set-off, eligibility disputes and statutory restrictions.
Pension-related receivables
Employer contribution refunds or scheme-related receivables.	Assignment by way of security Other	Companies House filing pension trustee and statutory restrictions must be checked.	High	Trust structure, statutory protections and regulator powers.
Hedging rights
ISDA receivables, close-out amounts, collateral return rights.	Assignment by way of security Fixed charge Other	Companies House filing notice and netting or collateral document review.	High	Netting, set-off, transfer restrictions and financial collateral rules.
Claims and litigation proceeds
Damages claims, settlement proceeds, arbitration awards.	Assignment by way of security Fixed charge	Companies House filing notice may be given to claim counterparty after crystallisation.	High	Champerty concerns, uncertainty, privilege and settlement control.
Franchise rights
Franchise agreements, territory rights, royalty receivables.	Assignment by way of security Fixed charge	Companies House filing franchisor consent usually required.	High	Termination rights, non-transferability and brand control provisions.
Securitised or assigned receivables residuals
Deferred purchase price, excess spread, residual collections.	Assignment by way of security Fixed charge	Companies House filing review prior sale and trust arrangements.	High	True sale terms, priorities, commingling and structural subordination.
Floating asset pool
All present and future undertaking, assets and rights.	Floating charge	Companies House filing insolvency priority and prescribed part rules apply.	Low	Ranks behind fixed charges, preferential debts and prescribed part carve-out.

What Assets Can A UK Debenture Cover?

A UK debenture can be drafted to cover a wide pool of company assets, but the security method varies by asset. Land, ships, aircraft, registered IP and certain financial assets often require asset-specific filings or notices in addition to Companies House registration.

When Is A Fixed Charge More Difficult To Achieve?

Fixed charges are most sensitive where the company needs freedom to deal with the asset, especially stock, fluctuating bank accounts and receivables. If the lender does not exercise sufficient control, the security may be vulnerable to recharacterisation as a floating charge.

Which Assets Usually Need Extra Perfection Steps?

UK land: register the charge at Companies House and usually at HM Land Registry.
Receivables and contracts: give notice to debtors or counterparties where an effective legal assignment or priority protection is required.
Shares: take signed stock transfer forms and share certificates, and consider updating the company register when appropriate.
IP rights: register at Companies House and consider recordal at the relevant IP registry, such as the UK IPO.
Ships and aircraft: specialist register filings are commonly needed.

Why Do Negative Pledges And Consent Rights Matter?

Many valuable assets are affected by third-party restrictions, such as anti-assignment clauses in contracts, landlord consent for leases, retention of title claims over stock, regulatory licences, or bank mandate restrictions. These issues should be checked before relying on a debenture as full asset coverage.

Asset Classes Commonly Covered by a UK Security Agreement

Want to Generate Your own Debenture?

Docaro AI can help you write your own Debenture for use in the United Kingdom in minutes.

Generate Your Document Now

FAQs

What asset classes can a UK security agreement cover?

A UK security agreement (often called a debenture for companies) can cover many asset classes, including property, receivables, bank accounts, equipment, inventory, shares, intellectual property and contractual rights.

Can a debenture cover future assets?

Can real estate be included in a UK security agreement?

Are receivables covered by a UK debenture?

Can a lender take security over bank accounts?

Show All FAQs