Ed Miliband will pledge to end non-dom tax status in speech in Warwickshire later today.
The Labour leader will blast non-dom arrangements for making Britain an "offshore tax haven." Around of 115,000 people would be affected by Labour's policy.
Non-domicile status is granted to those who are British residents who pay tax on their UK income, but their permanent home is abroad so pay no UK tax on their foreign income. Non-doms already pay a hefty £30,000 annual charge for their tax status.
"The next Labour government will abolish the non-dom rule. And we will replace it with a clear principle - anyone permanently resident in the UK will pay tax in the same way," Miliband will say.
The move could worsen Labour's already frosty relationship with the business community that in the main values flexible and accommodating tax arrangements for foreign investors.
Labour concede they don't know how much the money the policy will raise but expect the Treasury will rake in "hundreds of millions of pounds." If Miliband wins the keys to number 10 long-term non-doms will be granted a short adjustment period to get their tax affairs in order.
The policy proved popular with at least one businessman - Duncan Bannatyne. The former Labour supporter who put his name to a letter backing the Tories' economic policy last week tweeted "this gets my vote I never thought any party would have courage to do this."
Ed Milliband says he will abolish non-dom status in UK. This gets my vote I never thought any party would have courage to do this.— Duncan Bannatyne (@DuncanBannatyne) April 7, 2015
The Conservatives were quick off the mark to attack the policy with George Osborne declaring the policy could actually cost the government revenue. Osborne accused Labour of "tinkering around the edges," and claimed the policy was another reminder of why they (Labour) can't be trusted with our economy."