The Principal Act is amended by substituting the following for section 86:

"86. Exemption relating to certain dwellings

(1) In this section -

'dwelling house' means -

(a) a building or part (including an appropriate part within the meaning of section 5(5)) of a building which was used or was suitable for use as a dwelling, and

(b) the curtilage of the dwelling house up to an area (excluding the site of the dwelling house) of 0.4047 hectares, but if the area of that curtilage (excluding the site of the dwelling house) exceeds 0.4047 hectares, then the part which comes within this definition is the part which, if the remainder were separately occupied, would be the most suitable for occupation and enjoyment with the dwelling house;

'relevant period', in relation to a relevant dwelling house comprised in an inheritance, means the period of 6 years commencing on the date of the inheritance;

'successor' includes a transferee under an inheritance referred to in section 32(2).

(2) In this section a 'relevant dwelling house', in relation to a disponer or a successor, as the case may be, is a dwelling house that -

(a) was occupied by the disponer as his or her only or main residence at the date of his or her death,

(b) was continuously occupied by the successor as his or her only or main residence -