'We could pay as much as £500,000'

Retired property developer Tony Sutton said he was appalled to hear of the proposed 50 per cent rate, as it would mean far less going to their two children when he and his wife, Susan, die.

Mr Sutton, who lives in Weybridge, said: "We bought our house for just over £50,000 in 1977 but now it is worth around £2 million and that means a lot of extra tax. It could be as much as £500,000 and that's a big hit, it's punitive."

Mr Sutton, 60, added: "We already make use of the personal allowance for inheritances between a husband and wife but how long before Gordon Brown closes that loophole?"