More than four million people face paying an average of £60,000 under Labour’s inheritance tax scheme, the Conservatives have claimed.

The Tories have been on the defensive since Gordon Brown mocked David Cameron's proposal to raise the inheritance tax threshold to £1 million, saying the plan was "dreamed up on the playing fields of Eton".

The Conservatives hit back this week however, saying that one in five families could be subject to inheritance tax if the government keeps the current threshold.

As it stands now, if a deceased person’s estate is worth more than £325,000, their beneficiaries will pay 40 per cent of the difference in inheritance tax.

In his pre-Budget report last month, chancellor Alistair Darling decided not to raise the inheritance tax threshold to £350,000 as planned.

Mr Darling said: "I do not believe that raising this allowance can be a priority, given the impact of the downturn on the country’s finances.

"This will still mean that fewer than three per cent of estates will pay inheritance tax."

The Conservatives have panned his decision, saying now that one in five families could be subject to the tax.

Phillip Hammond, shadow chief secretary to the Treasury, said: "These figures show that inheritance tax remains a threat for millions of families under Labour.

"If you aspire to save for your future and pass something on to your children then Labour is no longer the party for you."

However, many of these four million people would be married couples, allowing them to pool their tax threshold and raise it to a combined £650,000.
© Adfero Ltd