Osborne bans permanent non-dom status

He said that anyone resident in the UK for 15 of the last 20 years will have to pay full British taxes on all worldwide income and gains, and hopes to raise £1.5bn when the new rules come into effect in 2017.

Additionally, people born in the UK to parents domiciled here will not be able to inherit non-dom status.

Osborne said:

"The Non-Domicile tax status is a long standing feature of the UK tax system, in place since 1914, that plays an important role in allowing those from abroad to contribute to our economy, before returning to their permanent home – and many countries have some version of this tax status.

"Simply abolishing it altogether, would, as Ed Balls correctly noted, probably cost the country money. Many of these people make a considerable contribution to our public life and to tax revenues.

"But there are some fundamental unfairnesses in the non-dom regime that I am putting a stop to today.

"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."