Disposal of Inherited Property

There's no deduction for any CAT (Capital Acquisitions Tax - ie Inheritance Tax) paid, although there can be a credit given for CAT against any CGT paid by the disponer for the same event (eg transfer of the house during lifetime rather than inheritance, the child would have a CAT credit for any CGT paid by their parent, not applicable in this case as there are two events)

In your example, the gain is €50k and taxed accordingly for CGT, your CGT bill will be circa €16k

It might feel harsh to be feel like you are double taxed but they are different taxes, one on the inheritance and one on the gain

Sometimes people may feel like they're being smart getting a house valued low when inheriting but it will catch up to in the end if you sell the house, you'll either pay CAT or CGT which are both the same rate. If the inheritance was from a parent where you have nothing further to inherit and there is unused CAT Group A threshold remaining then you should question the €100k valuation and perhaps seek to get that increased, it may not be correct depending on the time involved between inheritance and sale. If there no group threshold remaining then its a mute point as you'll end up paying the same in the end.

A house can't appreciate by 50k "immediately", so your example is poor.

Even the Irish property market isn't that bad!!

In the space of a week? A month?

You pay the same rate on CGT and CAT (above thresholds). Thinking you could subtract one from the other makes no sense.

Assume for simplicity you've already exhausted your lifetime threshold. You inherit a house. Two scenarios:

1. You have it valued at 100k for CAT then sell it for 200k. You pay CAT on the first 100k and pay CGT on the other 100k
2. You have it valued at 199k for CAT and then sell it for 200k. You pay CAT on the 199k and pay CGT on the 1k

It makes no difference how long it takes for the hypothetical change to manifest itself.