Cameron appeared to take the move in a bid to end the ongoing controversy over the tax status of leading donor Lord Ashcroft and Tory candidate for Richmond Zac Goldsmith.
Lord Ashcroft has not made his tax position clear, insisting that it is a private matter, while Goldsmith was recently revealed to be non-domiciled for tax purposes. Goldsmith has since said he will pay UK taxes.
The announcement means that a number of peers across the main parties will have to change their taxation status if they want to remain in Parliament.
Cameron said: “I think it is time to pass a law that says that if you want to be in the Houses of Parliament, if you want to be a legislator, you need to be or be treated as a full UK taxpayer.
“We would pass that law if we get elected. We would pass it straight away, we would bring it into force as rapidly as we could. I think that would put the situation beyond doubt.”
The Liberal Democrats have criticised the Tories for objecting every time they raised this matter in the past.
Speaking on BBC Radio 4’s Today programme this morning, LibDems Shadow Home Secretary Chris Huhne said: “[David Cameron] frankly has been bounced into this by the revelation that Zac Goldsmith has avoided probably nearly $6m through non-dom status.
“The Conservatives objected on every single occasion and on no occasion did they make the objection that this is such a complex matter that it has to be done by Government
“This is a very simple matter saying that if someone is a legislator they ought to be paying full UK tax on their worldwide income.”