Any person who was a citizen of the United Kingdom and Colonies immediately before commencement and who does not at commencement become either a British citizen or a British overseas territories citizen shall at commencement become a British Overseas citizen.
Section 26: Citizens of U.K. and Colonies who are to become British Overseas citizens at commencement.
British Nationality Act 1981 · 1981 c. 61View on legislation.gov.uk
Part III: British Overseas Citizenship
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