24U.K.In section 88 of IHTA 1984 (protective trusts), after subsection (2) insert—
“(3)Where—
(a)settled property became held before 22nd March 2006 on trusts to the like effect as those specified in section 33(1)(i) of the Trustee Act 1925, and
(b)as a result of the failure or determination of those trusts on or after 22nd March 2006, the principal beneficiary is treated by subsection (2)(b) above as beneficially entitled to an interest in possession,
this Act shall apply in relation to that interest in possession as if the principal beneficiary became beneficially entitled to that interest in possession before 22nd March 2006.
(4)Subsection (5) below applies where—
(a)settled property becomes held on or after 22nd March 2006 on trusts to the like effect as those specified in section 33(1)(i) of the Trustee Act 1925,
(b)the interest of the principal beneficiary under those trusts is—
(i)an immediate post-death interest,
(ii)a disabled person's interest within section 89B(1)(c) or (d) below, or
(iii)a transitional serial interest, and
(c)as a result of the failure or determination of those trusts, the principal beneficiary is treated by subsection (2)(b) above as beneficially entitled to an interest in possession.
(5)This Act shall apply—
(a)as if that interest in possession were a continuation of the immediate post-death interest, disabled person's interest or transitional serial interest, and
(b)as if the immediate post-death interest, or disabled person's interest or transitional serial interest, had not come to an end on the failure or determination of the trusts.
(6)Subsection (2) above does not apply in a case where—
(a)settled property becomes held on or after 22nd March 2006 on trusts to the like effect as those specified in section 33(1)(i) of the Trustee Act 1925, and
(b)the interest of the principal beneficiary under those trusts is—
(i)not an immediate post-death interest,
(ii)not a disabled person's interest within section 89B(1)(c) or (d) below, and
(iii)not a transitional serial interest.”