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.
Labour's deputy leader Harriet Harman said the party will integrate a range of tax reform measures if they were in government to ensure those at the top pay more.
She said it was not a priority of the party to enable those on higher incomes or with assets worth over £650,000 to save money through inheritance tax. She said the policy was the "polar opposite" of what Labour want to do. Speaking on the BBC1 Andrew Marr show she said:
"It is becoming clearer and clearer if we get to the election. The Tories are only helping a few people and we want everyone to be better off."
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.