(1) Subject to subsection (3), any interest in residential property to which a person was beneficially entitled in possession on 14 June 2000 shall not be relevant residential property of that person on any relevant valuation date.

(2) Subject to subsection (3), any interest in residential property which was comprised in a discretionary trust on 14 June 2000 shall not be relevant residential property of that discretionary trust on any relevant valuation date.

(3) Where a person has entered into a contract before 15 June 2000 to have any interest in residential property transferred to that person or to another in that person's right or on that person's behalf, then for the purposes of subsections (1) and (2), no such person shall be considered to have become beneficially entitled in possession to that interest and, if any such person is a trustee of a discretionary trust, that interest shall not be considered to have become comprised in that trust, until such time as that interest has been transferred to that person or to another in that person's right or on that person's behalf, unless that contract was evidenced in writing before that date.