UK Immigration Law
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If you have received your settlement visa you will now have to wait two years until you are eligible to apply (again) for indefinite leave to remain. Once you have received ILR you can then apply for naturalisation (British Citizenship) after one year from the date of ILR.
It would have been better to have waited for one year from the date you previously obtained ILR and then applied for naturalisation. Because you have applied for settlement again your ILR has now fallen away, but perhaps this may not have been practical at the time.
Right. This explains it, if your previous has ILR has been transferred to your present passport then you can apply immediately for British Citizenship as the time limit is one year from receiving ILR and you have been here for much longer than that.
If your present has an "indefinite leave to remain" stamp on it as a result of your request for it to be transferred then you can apply for naturalistion now.
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