George Osborne also announced that stamp duty would rise as expected to 7% on properties worth more than £2m bought by individuals.
Meanwhile UK residential property bought by offshore envelopes will be subject to capital gains tax.
He said “abuse” of the system by wealthy individuals using companies to buy expensive residential property in the UK to avoid the tax would stop.
The Chancellor said: “I regard tax evasion and - indeed - aggressive tax avoidance - as morally repugnant.
"If you buy residential property in the UK we expect you to pay stamp duty. That is the clear intention of government.”
He added that government would be “swift” in its response to those who attempted to avoid paying the tax and would not duck retrospective action.
Osborne added: “You have been warned.”
Ed Miliband, leader of the opposition, criticised the 7% hike on £2m plus properties saying just 4,000 homes in this bracket are sold a year.
He claimed it was “the same old Tories” giving a boost to the wealthy because 300,000 people would benefit from the “massive windfall” cutting the 50p tax rate to 45p would produce.
Miliband dubbed the cut in top rate tax “the government’s very own bankers’ bonus”.
Russell Quirk, director of the estate agents eMoov.co.uk, believes the move is a tax on London and the South East.
He said: "Few parts of the Budget smacked of such naked tokenism as the new top rate of stamp duty.
"The extra tax revenues generated by the new 7% rate will be small, given that these super-prime homes are such a small proportion of the market.
"But if his fiscal case is shaky, the Chancellor's political calculations are flawless.
"Much of the pain of the new top rate will be felt by wealthy foreign buyers, who can't vote in Britain.
"At a stroke Mr Osborne is trying to sugarcoat the abolition of the 50p income tax rate and give a nod towards Lib Dem calls for a mansion tax.
"But such crude attempts to placate opponents, or even coalition partners, rarely make for good policy.
"With such a huge disparity in property prices across the UK, it will inevitably turn into a tax on London and the South East.
"It may be a clever wheeze to mitigate the political fallout from the abolition of the 50p tax rate. But ultimately this ill-thought-out measure is just another tax on aspiration, and a levy on success."
But Ben Thompson, managing director at Legal & General Mortgage Club, welcomed the move.
He said: "It can only be a good thing when tax loopholes are closed and any additional tax receipt in this regard will no doubt be very welcome indeed at this time."
HMRC estimates that it will raise an additional £35m through this action.
Thompson added: "We would like to have seen this money channelled towards helping another 7,000 first-time movers through an extension to stamp duty relief for them.
"Many second steppers need to move on but are finding it difficult to save up large sums to pay for stamp duty.
"Although there has been some positive help towards buyers of new homes, it is the second steppers that will increase property choice by selling to first-time buyers and get the market rebuilt from the bottom again.
"Once this starts to happen, any recovery in the housing market will feel more healthy and sustainable."
The stamp duty changes will be in force from midnight tonight.
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