Schedule 11 | Rebasing of assets

(1)This paragraph applies to the disposal of an asset by an individual (“P”) where—

(a)the asset was held by P on 5 April 2017,

(b)the disposal is made on or after 6 April 2025,

(c)the asset was not situated in the United Kingdom at any time in the period beginning with 6 March 2024 and ending with 5 April 2025,

(d)P was not domiciled in the United Kingdom at any time in a tax year before tax year 2025-26, and

(e)P has made a claim under section 809B of ITA 2007 (claim for remittance basis) for at least one tax year that is—

(i)one of the tax years from tax year 2017-18 to tax year 2024-25, and

(ii)a tax year for which neither section 809D nor 809E of that Act applied to P (remittance basis applies without claim).

(2)In computing, for the purpose of TCGA 1992, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date.

(3)Sub-paragraph (2) applies notwithstanding section 58(1) of TCGA 1992 (disposals between spouses).

(4)Where under section 127 of TCGA 1992 (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in sub-paragraph (1)(c) applies to both the original and the new holding.

(5)Section 835BA of ITA 2007 (deemed domicile) applies for the purposes of sub-paragraph (1)(d).

(6)This paragraph and paragraphs 2 and 3 have effect as if they were included in TCGA 1992.

(1)This paragraph applies for the purposes of paragraph 1(1)(c) in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period.

(2)The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when—

(a)it meets the condition in section 809Z(3)(a), (b) or (c) of ITA 2007 (public access),

(b)it meets the condition in section 809Z3(3)(a), (b) or (c) of ITA 2007 (repairs),

(c)the sole or principal purpose of its being situated in the United Kingdom is to sell it or put it up for sale, or

(d)in the case of clothing, footwear, jewellery or a watch, it is for the personal use of—

(i)P or a husband, wife or civil partner of P, or

(ii)a child or grandchild of a person within sub-paragraph (i), if the child or grandchild has not reached the age of 18.

(3)The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which section 809L(2)(a) of ITA 2007 applies but—

(a)by virtue of section 809X(5)(c) of ITA 2007 (notional remitted amount less than £1000) it is treated as not remitted to the United Kingdom, or

(b)by the end of the relevant period it has not failed to meet the temporary importation rule in section 809Z4 of ITA 2007.

(4)Section 809M(3)(a) of ITA 2007 (persons living together) apply for the purposes of sub-paragraph (2)(d)(i).

(5)In this paragraph the “relevant period” means the period beginning with 6 March 2024 and ending with 5 April 2025.

(1)An individual may make an election for paragraph 1 not to apply to a disposal made by the individual.

(2)Sections 42 and 43 of TMA 1970 (procedure and time limit for claims), except section 42(1A) of that Act, apply in relation to an election under this paragraph as they apply in relation to a claim for relief.

(3)An election under this paragraph is irrevocable.

(4)All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under this paragraph.

(1)In Schedule 8 to F(No.2)A 2017, in paragraph 41(4)(b), for “that in which the disposal was made” substitute “the tax year 2024-25”.

(2)The amendment made by this paragraph has effect for the tax year 2025-26 and subsequent tax years.