Joe's mother dies, leaving him the family home in Dublin 6. The terraced red-brick house in Rathgar is estimated to be worth £320,000. The rest of her estate she leaves to other members of the family so the house is his sole legacy. He has not inherited anything else previously.

Because he is the son of the deceased, Joe's inheritance falls into Class A for tax purposes. As a result, he enjoys a tax-free threshold of £192,900 but he must pay tax on the balance of £127,100.

Inheritance tax is set at 20 per cent on the first £10,000 above the threshold level, which comes to £2000. Joe must then pay 30 per cent on the next £30,000 or £9,000 while he is taxed at 40 per cent on the balance of £87,100, amounting to £34,840. Added together, this leaves Joe with a tax bill of £45,840 on his inheritance.