CG25304 - Individual becoming deemed domiciled for 2017/18 only under condition B – rebasing examples

  1. Mr A first becomes deemed domiciled under condition B of s835BA ITA2007 for 2018/19. Rebasing is not available for Mr A.

  2. Mrs B is the settlor of a non UK resident trust that holds non-UK assets. Rebasing is not available for the trust assets.
  3. Non-UK situs assets are held by a nominee for Mr C. Subject to the other conditions being met, the assets are within the scope of the rebasing rules.
  4. Mr D acquires a non UK situs asset on 20/5/15 and transfers it to his wife Mrs D on 21/3/17. She disposes of the asset on 20/12/17. Subject to the other conditions being met Mrs D would be entitled to rebasing for the asset transferred, rather than her acquisition cost being the amount provided by the no gain/no loss provisions for transfers to a spouse. (For Mr D, his transfer to Mrs D is subject to the no gain/no loss provisions as normal.)
  5. Mr D acquires a non-UK situs asset on 5/3/14 and transfers it to his wife Mrs D on 30/6/17. Mr D meets the necessary conditions for rebasing to apply and in the computation of the no gain / no loss the 6/4/17 value will be included, say the computation shows the deemed consideration is £20,000. On a later disposal by Mrs D although rebasing does not apply because her acquisition of the asset is after 5/4/17 her acquisition cost would remain at the £20,000.
  6. Mr E becomes deemed domiciled under condition B of s835BA ITA2007 for 2017/18 but has not previously made any claims to the remittance basis and s809H has not applied in any year. Rebasing is not available to Mr E.

  7. Ms F becomes deemed domiciled under condition B of s835BA ITA 2007 and has owned a UK property for many years. Rebasing is not available for UK situs assets.

  8. Mr G becomes deemed domiciled on 6/4/17 only under condition B and meets the other conditions for rebasing at that time. By 2019/20 he has acquired a domicile of choice in the UK. Following a change in circumstance he leaves the UK and loses his domicile of choice in the UK. He again returns to the UK in 2026/27 and makes disposals in this year. Rebasing is not available for non-uk situs assets held at 5/4/17 and disposed of in 2026/27. This is because at some point in the period from 6/4/17 to 5/4/27 he was actually UK domiciled. It also follows that from 2017/18 to 2026/27 in at least one year condition B would not have been met. Failure to meet condition B in all relevant years would similarly prevent rebasing from applying.