<P> In the United Kingdom, Inheritance Tax is a transfer tax . It was introduced with effect from 18 March 1986 replacing Capital Transfer Tax . </P> <P> Prior to the introduction of Estate Duty by the Finance Act 1894, there was a complex system of different taxes relating to the inheritance of property, that applied to either realty (land) or personalty (other personal property): </P> <Ol> <Li> From 1694, Probate Duty, introduced as a stamp duty on wills entered in probate in 1694, applying to personalty . </Li> <Li> From 1780, Legacy Duty, an inheritance duty paid by the receiver of personalty, graduated according to consanguinity </Li> <Li> From 1853, Succession Duty, a duty introduced by the Succession Duty Act 1853 applying to realty settlements, taking effect on the death of the settlor </Li> <Li> From 1881, Account Duty applied as an anti-avoidance duty on lifetime gifts made to avoid paying Legacy Duty </Li> <Li> From 1885, Corporation Duty applied to the annual value of certain property vested in corporate and unincorporated bodies that would otherwise have avoided any of the above duties </Li> <Li> From 1889 (scheduled for expiry in 1896), Estate Duty, being an additional stamp duty on estates and successions greater than £ 10,000 in value </Li> </Ol> <Li> From 1694, Probate Duty, introduced as a stamp duty on wills entered in probate in 1694, applying to personalty . </Li>

What is the rate of uk inheritance tax