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The Conservative Party has pledged to increase inheritance tax to £1m if it gets into power, which will benefit second homeowners and investors, according to tax specialists Baker Tilly.

The tax is currently at £300,000 and the tax specialists added this would transform the estate planning landscape for many families, not only those whose houses had grown in value ahead of normal inflation but also making the benefits available for families with significant levels of investments.

The Conservative Party has claimed that any unused nil-rate band can be transferred to the surviving spouse in the case of couples, taking the total rate to £2m.

A higher nil-rate band would also transform the opportunities for wealthier families to make longer-term provision through trusts, according to Baker Tilly. It added at present an individual may create a lifetime trust up to the level of the nil-rate band, currently £312,000 every seven years because absolute gifts in lifetime generally drop out for IHT purposes after seven years. Families with wealth of up to £2m currently have to balance tax saving against the need for security of income. Increasing the nil-rate band for a couple to £2m would spare most families this dilemma.

George Bull, head of tax at Baker Tilly Tax and Advisory Services, said that the issue of IHT is of greater significance for voters than the Exchequer.

He added: "Inflation has eroded the value of the IHT nil-rate band to the point that anyone in the UK with an average-price house and no mortgage life will have to pay. A £1m exemption would take most people out of the IHT net and the surprising thing is that it will be available to couples. That will take out the vast the majority of houses, pension entitlements and investments out of the IHT net and it will be welcomed. This move will be very popular. You only have to look at the effect of the last political party conference season and the impact it had on the Budget."

Marcus Carlton, of Kent-based IFA HFM Columbus, said he expects the Tory announcement to be well received.

He added: "I think it will be massively popular among middle Britain and will lift a huge number of estates out of IHT. If families are set to inherit money, people will need to take advice. IHT planning is big business, but as one door opens another one shuts. A lot of IHT planning results in very restrictive trusts."