(1) Section 12 of the Principal Act is amended by -

(a) the substitution of the following subsection for subsection (1):

"(1) In this Act, 'taxable inheritance' means -

(a) in the case where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the successor takes the inheritance, the whole of the inheritance;

(b) in the case where the successor (not being a successor in relation to a charge for tax arising by virtue of section 106 of the Finance Act, 1984, section 103 of the Finance Act, 1986, or section 110 of the Finance Act, 1993) is resident or ordinarily resident in the State at the date of the inheritance, the whole of the inheritance; and

(c) in any case, other than a case referred to in paragraph (a) or (b), where at the date of the inheritance -

(i) the whole of the property -

(I) which was to be appropriated to the inheritance; or

(II) out of which property was to be appropriated to the inheritance,

was situate in the State, the whole of the inheritance;

(ii) a part or proportion of the property -

(I) which was to be appropriated to the inheritance; or

(II) out of which property was to be appropriated to the inheritance,

was situate in the State, that part or proportion of the inheritance.",