A pledge to lift everyone except millionaires out of inheritance tax is to be revived by the Conservatives in their general election manifesto . Official forecasts suggest the number of families paying death duties will double over the next five years unless the current threshold of £325,000 is raised . Leaked Government documents suggest that the majority of estates currently liable would be lifted out of tax under plans drawn up for the Tories . The inheritance tax cut will not feature in today 's Budget because it has been blocked by the Lib Dems . The inheritance tax cut will not feature in today 's Budget because it has been blocked by the Liberal Democrats . The Conservatives proposed raising the threshold to £1million before the 2010 election , prompting the Labour government to allow married couples effectively to combine their allowances to £650,000 . The Chancellor 's plan to raise it further was killed off by the coalition with the Lib Dems , who insisted that raising the personal income tax allowance should take priority . David Cameron believes families who do not feel 'in any way mega-rich ' are being dragged into the tax bracket , according to Government sources . One option is to create a new tax free band worth £175,000 per person on a family home , that could be transferred between married couples , making it worth a maximum of £350,000 . The leaked documents show that by adding the existing maximum combined allowance for couples of £650,000 to the new maximum relief of £350,000 , properties up to £1million would escape inheritance tax . The Lib Dem Business Secretary Vince Cable ( pictured ) said the Tory plan was 'very cynical ' The paper , written by officials for the Conservative Treasury minister David Gauke , notes the scheme will be 'very popular with the public ' . 'It will allow you to say you are exempting those with modest homes from inheritance tax ( with up to £1million of assets ) exempted in certain circumstances , ' the paper states . 'This reflects the concern raised by the public about rising house prices increasingly leading to estates with a modest house , particularly in London and the South East , paying inheritance tax . ' It estimates that by 2019-20 , around 20,000 fewer estates a year would be liable for any inheritance tax . Critics of the duty say that money bequeathed at death has already been taxed , so should not face further charges . They also point out that the super-rich often employ accountants to devise trusts and exemptions to reduce their liability . The Lib Dem Business Secretary Vince Cable said the Tory plan was 'very cynical ' . 'If taxes can be cut – and it 's very difficult within the present budget constraint – we 've got to start at the bottom with people on low pay , not at the top , ' he said . A revival of the inheritance tax pledge would be another pitch to the 'grey vote ' that could prove crucial in May 's election . The policy was credited with a surge in support for the Conservatives in 2007 , which helped scare Gordon Brown into abandoning plans for a snap election . Experts pointed out that the Treasury has suggested the inheritance tax threshold will remain frozen until 2017-18 to help pay for the introduction of a new cap on the cost of social care . By the following year , it is forecast to be worth almost £6billion a year to the Exchequer . Jonathan Isaby of the TaxPayers ' Alliance said : 'Building up a legacy for children and grandchildren is one of the reasons hard-working parents go into work every day , and it 's immoral for the taxman to take that away especially after the deceased has paid taxes all their lives . '
Tories want to lift everyone except millionaires out of inheritance tax . Will not feature in today 's Budget as blocked by the Liberal Conservatives . Democrats proposed raising threshold to £1million before 2010 election . But it will now be revived again in their general election manifesto .