(1) The Second Schedule to the Principal Act is amended -

(a) in Part I, by the substitution of the following paragraphs for paragraphs 1 to 7:

"1. In this Schedule -

'group threshold', in relation to a taxable gift or a taxable inheritance taken on a particular day, means -

(a) £300,000, where -

(i) the donee or successor is on that day the child, or minor child of a deceased child, of the disponer, or

(ii) the successor is on that day a parent of the disponer and -

(I) the interest taken is not a limited interest, and

(II) the inheritance is taken on the death of the disponer;

(b) £30,000, where the donee or successor is on that day, a lineal ancestor, a lineal descendant (other than a child, or a minor child of a deceased child), a brother, a sister, or a child of a brother or of a sister of the disponer;

(c) £15,000, where the donee or successor (who is not a spouse of the disponer) does not, on that day, stand to the disponer in a relationship referred to in subparagraph (a) or (b);

'the consumer price index number', in relation to a year, means the All Items Consumer Price Index Number for that year as compiled by the Central Statistics Office and expressed on the basis that the consumer price index number at mid-November 1996 is 100;

'Table' means the Table contained in Part II of this Schedule;