Specific gift exemptions in inheritance tax Share: Appears in Inheritance tax explained Related content Inheritance tax explained Inheritance tax is levied on wealth bequeathed at death, or given away shortly before death, above a threshold. Around 5% of all deaths attracted inheritance tax in 2022–23. Taxlab Taxes Explained Composition of estates by value, among those reported to HMRC, 2020–21 Taxlab Data Item Distribution of estate values and average effective inheritance tax rate among taxpaying estates worth more than £300,000 and reported to HMRC, 2020–21 Taxlab Data Item Inheritance tax reductions for gifts before death, 2023–24 Taxlab Data Item