(1) Section 104 of the Principal Act is amended by inserting the following after subsection (2):
"(3) The deduction by virtue of subsection (1) of capital gains tax chargeable on the disposal of an asset against gift tax or inheritance tax shall cease to apply to the extent that the asset is disposed of within 2 years after the date of the gift or, as the case may be, the date of the inheritance.".
(2) This section shall apply to gifts and inheritances taken on or after 21 February 2006.