Separate settlements: disposal by trustees of first settlement
If a new settlement has been created by the exercise of a power of appointment or advancement, it follows that the trustees of the new settlement have become absolutely entitled (although they are not beneficially entitled) as against the trustees of the original settlement, see CG37801, with consequential deemed disposals of the assets by the latter under TCGA92/S71 (1). This point is made clear by the House of Lords judgment in Roome v Edwards, 54TC359. The instructions in the following paragraphs provide guidelines to be followed in determining whether a new settlement has been created, having regard to the judgments in Hart v Briscoe and Hoare Trustees v Gardner, 52TC53, Roome v Edwards, 54TC359, Bond v Pickford, 57TC301 and Swires v Renton, L3278. These instructions should be applied whether or not the same persons are trustees of both the original and the new settlements.