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* FTSE 100 closes up 0.9 pct
* Housebuilders, estate agents under pressure after budget
* Standard Chartered falls as China turmoil continues (Adds detail, updates prices)
By Liisa Tuhkanen and Alistair Smout
LONDON, July 8 (Reuters) - A rally in Barclays after a management shake-up helped Britain's top share indexgain on Wednesday, but housebuilders took a hit from reformsintroduced by finance minister George Osborne.
The FTSE 100 closed 0.9 percent up at 6,490.70 afterposting its lowest close since mid-January in the previoussession.
However, London-exposed housebuilders and estate agentstumbled after Osborne said the government will tighten "non-dom"tax rules and abolish the status which gives tax advantages topeople officially domiciled abroad and has caused controversyfor years.
Barratt Development, Persimmon and TaylorWimpey dropped between 5.7 and 4.7 percent, making up thetop three FTSE 100 losers.
"Property developers who specialise in selling to non-dompurchasers may find that the Budget announcements may dampendemand until the details have been fully absorbed," said GaryRichards, partner at City law firm Berwin Leighton Paisner.
However, the budget -- which also saw Osborne cut welfarespending, trim corporation tax and ease income tax bill -- wasbroadly seen as business friendly, CMC market analyst JasperLawler wrote in a research note.
Among the gainers, Britain's biggest defence contractor BAESystems added 3.5 percent after the government said itwould commit to NATO's defence spending pledge for the next fiveyears.
Barclays was also one of the top gainers, rising 2 percentafter ousting its chief executive. The lender surprised marketsby saying that Antony Jenkins would leave and a search for a newchief executive was under way, in an attempt to acceleratestrategic change and boost shareholder returns.
"While a period of uncertainty until a successor is foundwould usually be a negative, the positive share price reactionsuggests optimism that the replacement can better satisfy theboard on the financial performance and strategic change front,"said Mike van Dulken, head of research at Accendo Markets.
The banks received a boost after Osborne said he wouldreduce a levy charged on the assets of financial institutionsand replace with it with a surcharge on bank profits. However,the rally soon calmed down, with Britain's stock market index ofbanking shares down 0.2 percent at the close.
Among fallers in the banking sector, Standard Chartered closed 1.5 percent lower. The Asia-focused lender cameunder pressure after Chinese stocks plunged, with the country'ssecurities regulator warning investors were in the grip of"panic sentiment".
The FTSE 100 is still some 9 percent below an all time highhit in late April, with the Greek debt crisis having knockedappetite for equities across the continent.
Euro zone members have given Greece until the end of theweek to come up with a proposal for sweeping reforms in returnfor loans that will keep the country from crashing out ofEurope's currency bloc and into economic ruin. (Editing by Toby Chopra)
