A Conservative government would end inheritance tax on family homes worth up to £1m from April 2017, David Cameron announced.
This revives a previous Tory pledge from 2010 which the Liberal Democrats halted as part of their coalition, although the new 'family home allowance' would not apply to properties worth over £1 million.
Labour said the proposal was a "panic move" which would bring a tax cut of £140,000 to people owning £2 million homes.
David Cameron has said a Conservative government will end inheritance tax on family homes worth up to £1m from April 2017.
"We will take the family home out of inheritance tax.That home that you have worked and saved for belongs to you and your family. You should be able to pass it onto your children. And with the Conservatives, the tax man will not get his hands on it."
Ed Balls has unveiled a 10-point plan to bring in £7.5 billion a year to the Treasury in unpaid taxes.
A Conservative government would end inheritance tax on family homes worth up to £1m from April 2017, David Cameron has announced.