I always thought you could pay the taxes on the money with the money you get.

It might have to do with the fact he lived in another country and to get it across country lines you need to pay it up front. Even if you have to borrow it from a bank or something, you could pay it back right away.

Sounds more like a scam than a legitimate tax.

This probably falls under international guidelines. If you're a resident of another country and the United Kingdom wants its money up front, it's done because they fear you will bolt or withdraw the money without paying the tax. A nation's options are limited for going after tax evaders overseas.

There are few to no known cases of the UK going after someone in the US or Europe for refusing to pay inheritance taxes. No sane country would extradite their citizens to face criminal charges over an inheritance tax either. So, places like the UK are limited to demanding their inheritance tax up front, just to make sure they get it.

The best thing to do in this situation is hold your nose and pay it. Hopefully, if you don't have enough of your own money to cover the bill, an arrangement can be made with their taxation authorities for it to come out of the inheritance. It seems like this wouldn't be difficult to do if the money is being held by a UK run institution.

Consulting legal advice in both countries and preparing to deal with paperwork is wise in any case. Attorneys well versed in international tax laws are worth seeking out too.

So you can go to some tax havens (the Likes of Gibraltar) where you only have to buy a flat and doesnt even have to live there for 'n' number of days if you chose so to save that tax..lol

What am I missing here? There is an inheritance in England of 800,000. Why can not the solicitor or whatever you call the executor of an estate pay the 80,000 and send the 720,000 to the son? It appears suspicious to me as government entities take their money before releasing any funds.
The inheritance tax rate is 0% on the first £325,000 and 40% on the remaining value, so how does the 10% number enter the picture?
As I have said , sounds suspicious to me . Please check with whoever handled your father's will and estate.