(1) Section 72 of the Principal Act is amended -

(a) in subsection (1) -

(i) before the definition of "insured", by inserting the following definition:

"'approved retirement fund tax' means tax which a qualifying fund manager is obliged to deduct in accordance with the provisions of section 784A(4) (c) of the Taxes Consolidation Act 1997;",

and

(ii) in the definition of "relevant tax", by substituting "means approved retirement fund tax and inheritance tax" for "means inheritance tax",

and

(b) in subsection (2), by inserting the following after paragraph (b):

"(c) For the purposes of this section, an amount of the proceeds of a qualifying insurance policy equal to the amount of approved retirement fund tax shall be treated as applied in paying relevant tax of that amount.".

(2) This section has effect in relation to relevant tax payable in respect of inheritances taken on or after 3 February 2005.