The government has announced new tax clampdowns on the private equity industry and non-domiciled residents.
In his pre-Budget report on Tuesday, Alistair Darling said he wanted to ensure that "everyone who lives here to pays a fairer share".
Following a six-month review, the chancellor used his autumn statement on the public finances to respond to a growing campaign highlighting the growing economic role of firms bought out by private equity groups.
He promised a new code of conduct for private equity firms to be published next month. And from April next year, capital gains tax taper relief is being withdrawn and replaced by an 18 per cent tax rate.
Currently while capital gains tax is normally charged at 40 per cent, the 'taper relief' system means that owners of businesses can pay the tax at 10 per cent.
Private equity partners can pay this tax rate on profits from 'carried interest' - the fees charged by the funds to their investors - which makes up a substantial element of their pay.
"I believe that it is right that everyone who lives and works here should pay their fair share," Darling said.
'Non-doms'
In the wake of the Conservatives' plans for a flat-rate £25,000 annual levy announced last week, Darling also said he would close tax loopholes which take advantage of non-domicile status.
He noted that "non-domiciled taxpayers already pay about £4bn on their earnings". "Any proposal for change has to be fair, workable and affordable," he said.
The chancellor rejected the Tory plan as "if the charge of £25,000 was imposed, only an estimated 15,000 would earn sufficient money abroad to make it worthwhile to maintain non-domicile status" he said.
"As a result, the combined effect of people paying this charge or changing their tax status would be revenue not of £3.5bn, but £650m a year at most. A shortfall of more than £2bn."
Instead he proposed: "As a first step, introducing a charge after seven years, then a higher rate after 10; and preventing people claiming they are out of the country when they are actually here, from disguising income as capital and from claiming in effect two allowances; and for completeness on a flat rate charge for everyone."
Darling also announced three reviews on business tax simplification which he claimed would save companies £100m per year.
Earlier, interviewed in the Financial Times, the shadow chancellor promised the Conservatives would cut company tax rates.
George Osborne said he hopes to rebuild the Tories' pro-business reputation by moving to an Irish-style model of low corporate taxation.
"I want to make sure the Conservative Party fully understands the modern financial world and modern financial world understands our proposals," he explained.
