INHERITANCE TAX Inheritance Tax "is a penalty on thrift, independence and enterprise largely paid by people of modest means who cannot or do not make careful plans to avoid it." Kenneth Clark (Chancellor of the Exchequer 1996) Inheritance Tax is a tax levied by the government of 40% on everything you leave to your heirs exceeding certain limits (currently £285,000). Inheritance Tax can be substantially reduced or avoided altogether by careful planning and a well constructed Will. Shortland and Sawbridge can help with advice on this matter.