(1) Where, in any year commencing with the year 2003, under or in consequence of any disposition, property is subject to a chargeable discretionary trust on the chargeable date, the trust is deemed on each such date to become beneficially entitled in possession to an absolute interest in that property, and to take on each such date an inheritance accordingly as if the trust, and the trustees as such for the time being of the trust, were together a person for the purposes of this Act, and each such chargeable date shall be the date of such inheritance.

(2)

(a) In this subsection, "property" includes property representing such property.

(b) Where -

(i) under or in consequence of any disposition, property was subject to a discretionary trust prior to a chargeable date,