(1) Section 89 of the Principal Act is amended -

(a) in subsection (1) by substituting the following for the definition of "farmer":

"'farmer', in relation to a donee or successor, means an individual in respect of whom not less than 80 per cent of the market value of the property to which the individual is beneficially entitled in possession is represented by the market value of property in a Member State which consists of agricultural property, and, for the purposes of this definition -

(a) no deduction is made from the market value of property for any debts or encumbrances (except debts or encumbrances in respect of a dwelling-house that is the only or main residence of the donee or successor and that is not agricultural property), and

(b) an individual is deemed to be beneficially entitled in possession to -

(i) an interest in expectancy, notwithstanding the definition of 'entitled in possession' in section 2, and

(ii) property that is subject to a discretionary trust under or in consequence of a disposition made by the individual where the individual is an object of the trust,

and who -