Under section 239 of the Insolvency Act 1986, a preference arises where within six months (or two years where the creditor is a connected person) of an insolvent liquidation one or more of the company's creditors has been put in a better position than he would have been in as a result of the insolvency. In such cases the liquidator or receiver may set it aside where a desire to give a preference is demonstrated - this is assumed in the case of a connected person.