Jurisdiction(s):
United Kingdom

Thomas v Jones [2025] EWHC 756 (Ch): proving section 423 IA 1986 purpose by evidential building blocks; £3m gift set aside (England and Wales)

Published on: 30 April 2025

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Thomas and another (as trustees in bankruptcy of Roderic Alexander Innes Hamilton) v Jones and another [2025] EWHC 756 (Ch) What are the practical implications of this case?

In most claims under IA 1986, s 423, the chief difficulty for a claimant is proving that the person who entered into the transaction intended to put assets beyond a creditor’s reach; that subjective purpose must be established.

In the great majority of matters there is no direct ‘smoking gun’; instead, the claimant relies on the court drawing proper inferences against the defendant from other objective or established facts.

In this dispute, the clear judgment of Insolvency and Companies Court Judge Prentis proceeds by assembling a series of discrete findings of fact which, though not conclusive individually, together create a picture from which the court could infer that Mr Jones had the requisite purpose.

The building blocks included Mr Jones’ knowledge, at the time of the gift, of claims against him—both current and future—by Mr Hamilton, and their potential value...

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