849. Property ceasing to be settled property.

A deemed disposal of the settled property occurs when a beneficiary becomes absolutely entitled to settled property, whether because the trust itself ends or the property leaves the settlement through the exercise of a power of advancement1. The trustees are deemed to dispose of the property and immediately reacquire it at the market value on the date of deemed disposal2. Hypothetical costs of such a disposal and acquisition are excluded, but actual costs are not3. Any allowable loss which has accrued to the trustees in respect of the property, or which is represented by the property to which the