In Official Assignee v Carrim the High Court considered the concept of a "gift" in the Insolvency Act 2006.
The Official Assignee sought to cancel insolvent gifts made by the bankrupt to complete a property purchase by a family trust settled by the bankrupt and Ms Carrim, the bankrupt's partner (as trustees). The High Court considered:
- The appropriate calculation for the sum gifted by deed to fund the property purchase to be ordered to be paid to the Official Assignee
- Whether a second sum was a gift.
In terms of the appropriate calculation, the High Court disagreed with the argument for Ms Carrim that it should deduct the full value of the original loan, or offset the payment of household costs by Ms Carrim.
While, on the evidence, the Official Assignee did not establish the second sum was a gift, the decision provides guidance on concept of "gift" in the Act and evidential requirements.
See the full decision here.