1021. Initial interest of settlor or spouse or civil partner.

Where a settlor1 or his spouse or civil partner2 is beneficially entitled to a qualifying interest in possession3 in property immediately after it becomes comprised in the settlement, the property is treated4 as not having become comprised in the settlement on that occasion5; but when the property or any part of it becomes held on trust under which neither of those persons is beneficially entitled to a qualifying interest in possession, the property or part is treated as becoming comprised in a separate settlement made by that one of them who ceased (or last ceased) to be beneficially entitled