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I5.370 Relevant property and successive settlements

Where property has moved from one settlement to another there are some special rules.

Where property ceased to be comprised in one settlement before 10 December 1981 and after 26 March 1974 and, by the same disposition, became comprised in another settlement, it is treated as remaining comprised in the first settlement¹.

Where property ceases to be comprised in one settlement after 9 December 1981 and becomes comprised in another, unless in the meantime any person becomes beneficially entitled to the property (and not merely to an interest in possession, it is treated as remaining comprised in the first settlement².

The creation of an absolute interest may sometimes confer initially only an interest in possession (see, for example, Stenhouse's Trustees v Lord Advocate³. In the decision at first instance in IRC v Trustees of Sir John Aird's Settlement (No 2)⁴ (the point was not in issue in the appeal at [1984] STC 81) it was held that an absolute appointment