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B and her husband sold their jointly owned property and used the proceeds to purchase another property in B's sole name, at a time when the husband alone was being sued in debt proceedings for over £400,000. The husband's creditor sought to set aside the arrangements as being a transaction defrauding creditors under s 423 of the Insolvency Act 1986. The judge upheld the claim, and ordered the new property to be charged to the extent of the creditor's claim. The Court of Appeal dismissed B's appeal. On the evidence, the judge had reached the correct conclusion as to the use of the proceeds of the old property and how they had been applied so as to conclude that here had been a gift to her from her husband.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...