An improved manually operated torque magnifying impact tool is provided having an improved drive, an improvement for reducing friction loss in operation of the tool, an improvement for stopping rotation of the inertia member, improved ratcheting, improved clearance adjustment between the frame members and the inertia members, an improvement for precluding gauling between bearing surfaces during the operation of the tool, an improved disengagement of ratcheting members and engagement of such members to the fullest extent, and improved disengagement of the ratcheting members and stopping the rotation of the inertia member.