Schedule 2 to the Principal Act is amended, in Part 1, by the substitution of the following paragraph for paragraph 9:

"9.

(1) In this paragraph -

‘Child Care Regulations’ means the Child Care (Placement of Children in Foster Care) Regulations 1995 (S.I. No. 260 of 1995) or the Child Care (Placement of Children with Relatives) Regulations 1995 (S.I. No. 261 of 1995), as the case may be;

‘specified relative’, in relation to a person, means -

(a) a lineal ancestor of the person,

(b) a child of the person or of the person’s civil partner, or

(c) a brother or sister of the person.

(2) Where a person (referred to in this subparagraph as ‘the first- mentioned person’) has been placed in the foster care of another person (referred to in this subparagraph as ‘the second-mentioned person’) under the Child Care Regulations, the first-mentioned person is deemed to bear to the second-mentioned person the relationship of a child for the purpose of computing the tax payable on -

(a) a gift or inheritance taken by the first-mentioned person from the second-mentioned person, or

(b) a gift or inheritance taken by the first-mentioned person from a specified relative of the second-mentioned person,