Inheritance tax is also known as estate tax or death duty. Inheritance tax arises after the death of an individual. In the United Kingdom, death duty was first started as a tax that was charged on the estates of deceased people in England and Wales over a particular value from 1796. At that time these duties were called legacy, succession and estate duties. The value of estate duty changed over the period of time and the duty was extended. By the year 1857, any estate over £20 was taxable, but duty was never really collected on them. Only an estate priced over £1500 was taxed. Death duties were first started in the year 1894, and for the next 100 years, these were responsible for crumbling down of many large estates.