(1) Section 101 of the Principal Act is amended by inserting the following after subsection (2):

"(3) Notwithstanding subsection (2), where relevant business property (in this section referred to as 'original property') comprised in a gift or inheritance has been replaced directly or indirectly by other property and the market value of the original property is greater than the market value of that other property, then the reduction which would fall to be made under section 92 in respect of the original property shall be reduced in the same proportion as the market value of the other property bears to the market value of the original property.".

(2) This section has effect in relation to relevant business property which has been replaced by other property on or after 3 February 2005.