Part 9Insolvency etc.

Bankruptcy in England and Wales

I1419 Tainted gifts

1

This section applies if a person who is F1made bankrupt in England and Wales has made a tainted gift (whether directly or indirectly).

2

No order may be made under section 339, 340 or 423 of the 1986 Act (avoidance of certain transactions) in respect of the making of the gift at any time when—

a

any property of the recipient of the tainted gift is subject to a restraint order under section 41, 120 or 190, F4...

F3aa

such property is detained under or by virtue of section 44A, 47J, 47K, 47M, 47P, 122A, 127J, 127K, 127M, 127P, 193A, 195J, 195K, 195M or 195P,

b

there is in force in respect of such property an order under section 50, F7... 128(3), F5or 198.F2, or

c

there is in force in respect of such property an order under section 67A, 131A or 215A.

3

Any order made under section 339, 340 or 423 of the 1986 Act after an order mentioned in F6subsection (2)(a), (b) or (c) is discharged must take into account any realisation under Part 2, 3 or 4 of this Act of property held by the recipient of the tainted gift.

4

A person makes a tainted gift for the purposes of this section if he makes a tainted gift within the meaning of Part 2, 3 or 4.

5

In a case where a petition in bankruptcy was presented or a receiving order or adjudication in bankruptcy was made before 29 December 1986 (when the 1986 Act came into force) this section has effect with the substitution for a reference to section 339, 340 or 423 of the 1986 Act of a reference to section 27, 42 or 44 of the 1914 Act.