Rebasing applies on an asset by asset basis and there will is no requirement that any part of the sales proceeds relating to the part of the gain which arose before April 2017 should be left outside the UK. Where the asset was originally purchased with clean capital, the entire proceeds from the disposal can be brought to the UK without triggering a remittance. However, where it was purchased wholly or partly with foreign income and gains, an element of the disposal proceeds will still relate to those income and gains and so will be subject to the remittance basis in the normal way when the proceeds are brought to the UK.
It's also important to note the following:
- The asset disposed of needs to be a personally held non-UK situated asset (or if it has been a UK situated asset in the past, it ceased to be so from 16 March 2016 until 5 April 2017).
- Rebasing is not available for assets held in trust nor to assets to give rise to IT rather than CGT (eg. offshore bonds).
- The individual must become deemed domiciled on 6 April 2017.
- The Remittance Basis Charge (RBC) must have been paid for at least one tax year. Claiming the remittance basis is insufficient on its own.
- And lastly, the individual must not be a 'formerly domiciled resident', meaning someone born in the UK with a UK domicile of origin.
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