George Osborne announced widespread changes to non-domicile tax rules in today’s Budget.
His move followed widespread public support for Labour pledges to reform the non-dom rules during the general election campaign.
Osborne said: “It is not fair that people who are born in the UK to parents who are domiciled here, can later in life claim to be non-doms and live here.
“It is not fair that non-doms with residential property here in the UK can put it in an offshore company and avoid inheritance tax.
“From now on they will pay the same tax as everyone else.
“And most fundamentally, it is not fair that people live in this country for very long periods of their lives, benefit from our public services, and yet operate under different tax rules from everyone else.”
The Chancellor said he would abolish permanent non-dom tax status. Anyone resident in the UK for more than 15 of the past 20 years will now pay “full” British taxes on all worldwide income and gains.
He said: “All these non-dom measures will come into effect in April 2017, and they will raise £1.5bn in extra tax for the Exchequer over this Parliament. British people should pay British taxes in Britain – and now they will.”