From that date, anyone who has been resident in the UK for 15 of the past 20 years will be considered UK-domiciled for tax purposes on worldwide income and capital gains.
He said: “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.”
Non-domiciled individuals (non-doms) live in the UK but consider their permanent home to be elsewhere. The UK rules allow non-doms to pay UK tax on their offshore income only when they bring it into the UK.
The non-domiciled tax position has been law since 1914.
Osborne said: “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.”
Next, the Treasury will consult on the move, which it said will raise £1.5bn extra tax for the Exchequer.