The Finance Act 2025 CGT rebasing election is one of four headline reliefs in the non-dom reform package, but operationally the most narrowly targeted. The headline framing (rebasing to 5 April 2017 market value for non-doms disposing of qualifying assets) is widely cited; the operational eligibility is structurally limited by five cumulative conditions at Schedule 11 paragraph 1(1). All five conditions must be met for any given disposal; the most consequential of them is the structural exclusion of UK situs property (condition 3), which means most departing UK landlords cannot use the rebasing for their UK BTL portfolios.

This page is the dedicated rebasing standalone in the Wave 8 Bucket A cluster. The companion pages on FIG eligibility, FIG election mechanics, FIG year-5 cliff, TRF pillar, and TRF qualifying-capital cover the income-tax-side reliefs in the same FA 2025 package; the IHT cluster (s.6A LTR test, s.48ZA EPT pivot, s.18 spouse exemption) covers the IHT-side architecture. The rebasing is independent: it operates on the CGT base cost of a specific disposal, not on income tax or IHT mechanics.

The five cumulative conditions at Sch 11 paragraph 1(1)

For a disposal to qualify for the FA 2025 rebasing election, all five conditions must be satisfied:

  1. The asset was held by the individual on 5 April 2017. The rebasing reference date is 5 April 2017; the asset must have been the individual's holding on that date. Assets acquired after 5 April 2017 do not qualify.
  2. The disposal is made on or after 6 April 2025. The operative window starts at the FA 2025 commencement date. Pre-6 April 2025 disposals fall under the historic regime (pre-reform domicile and remittance basis architecture).
  3. The asset was NOT situated in the UK at any time during the period from 6 March 2024 to 5 April 2025. The 13-month reference period excludes UK situs assets. Condition 3 is the structural exclusion that catches UK BTL property, UK commercial property, UK-issued securities, and any other UK situs holding.
  4. The individual was not domiciled in the UK for any tax year prior to 2025-26. The historic non-dom requirement. The individual must have been non-UK-domiciled throughout their pre-2025-26 UK-residence years.
  5. The individual made an active claim under ITA 2007 section 809B (remittance basis) for at least one tax year in 2017-18 to 2024-25, in a year where neither section 809D (auto-RB for low-foreign-income) nor section 809E (small-foreign-income exception) applied. The active-claim requirement: only genuine remittance-basis users qualify, not incidental cases where the basis applied automatically.

The five conditions narrow the eligible population substantially. A UK-domiciled-of-origin departing landlord fails condition 4. A non-dom who never actively claimed s.809B (perhaps because their foreign income was low enough to fall under s.809D's automatic basis) fails condition 5. An individual whose only material assets are UK BTL properties fails condition 3 for all of them.

Condition 3 in detail: why UK property is structurally excluded

Condition 3 requires the asset not to have been situated in the UK at any time during the 6 March 2024 to 5 April 2025 reference period. The condition is binary: any UK-situs status during that 13-month window disqualifies the asset from the rebasing election. A UK BTL property is UK-situs throughout; condition 3 fails. A non-UK situs asset that was temporarily held through a UK custodian during the reference period (e.g., shares held briefly in a UK brokerage account in late 2024) is also disqualified.

The 6 March 2024 to 5 April 2025 reference period is calibrated to catch movements designed to circumvent the rebasing exclusion. The 6 March 2024 start date is the Spring Budget 2024 date, when the non-dom reform was announced; HMRC's anti-avoidance intent was to prevent assets being moved offshore in response to the reform announcement specifically to qualify for rebasing. An asset moved offshore before 6 March 2024 may pass condition 3 (subject to the continuing-non-UK-situs requirement); an asset moved offshore between 6 March 2024 and 5 April 2025 fails the test.

For UK property holdings, the situs is determined by the location of the underlying land; UK-located land is UK-situs by definition, and movement of legal title (gifts to children, transfers to trust) does not change the underlying situs. UK property therefore cannot qualify for the rebasing election under any structuring; the exclusion is structural.

Condition 5 in detail: the active s.809B claim requirement

Condition 5 requires the individual to have made an active claim under ITA 2007 section 809B for at least one tax year in 2017-18 to 2024-25, in a year where neither section 809D nor section 809E applied.

The distinction matters. Section 809B is the active claim for the remittance basis, typically requiring the individual to have signalled in their self-assessment return that they were claiming the basis (and paying the remittance-basis annual charge of £30,000 or £60,000 if a long-term resident). Section 809D provides an automatic remittance basis for individuals with unremitted foreign income below £2,000 in a tax year; the basis applies without an active claim. Section 809E provides a small-foreign-income exception that operates similarly to s.809D.

An individual whose remittance-basis position throughout 2017-18 to 2024-25 was only via the automatic s.809D or s.809E routes (perhaps because their foreign income was always low) does NOT satisfy condition 5; they cannot use the FA 2025 rebasing election. The active-claim requirement targets the cohort of substantial-foreign-income non-doms who deliberately structured their UK tax position around the remittance basis, not incidental low-foreign-income cases.

The 5 April 2017 rebasing date

Schedule 11 paragraph 1(2) provides that the asset is treated as acquired on 5 April 2017 at its market value on that date. The 2017 date predates the FA 2025 reform by 8 years; the structural reason is that 5 April 2017 was also a rebasing-relevant date in the earlier non-dom reform (when Schedule A1 IHTA 1984 came into force for UK residential property held offshore). The FA 2025 architecture reuses the 2017 date for consistency.

Earlier consultation drafts on the FA 2025 package included alternative rebasing dates (5 April 2019 and 5 April 2025 were both discussed during the policy development). The final enacted position is 5 April 2017. Sessions citing 2019 or 2025 are working from consultation drafts that were not adopted in the final Act; advice work should anchor on the 2017 date.

For an asset held continuously from pre-2017 to the disposal date, the 2017 valuation determines the rebased base cost. The latent gain from acquisition to 5 April 2017 is washed out; only the post-2017 gain is chargeable. For an asset acquired after 5 April 2017 (which fails condition 1), the rebasing does not apply; the historic cost is the base cost.

The per-disposal irrevocable election

Schedule 11 paragraph 3 provides that the election is available "to a disposal made by the individual": the election is per-disposal, not portfolio-wide. The individual can elect for one disposal and not another, depending on whether the rebasing improves the CGT outcome for that specific disposal. For an asset with substantial pre-2017 gains, electing improves the outcome (washes out the pre-2017 slice). For an asset with limited or no pre-2017 gain, not electing may be better (the historic cost basis already gives a low chargeable amount).

The election is irrevocable. Schedule 11 paragraph 3 sub-paragraph 3 states: "An election under this paragraph is irrevocable." Once made for a particular disposal, the election cannot be reversed. Sessions advising should run the calculation carefully before electing; an error in the 5 April 2017 valuation (which may itself require a formal valuation report for non-quoted shares, illiquid investments, or unique non-UK real estate) cannot be corrected post-election by un-electing.

The procedural framework is TMA 1970 sections 42 to 43 (except s.42(1A) which is disapplied). The election is made via entry in the self-assessment return for the year of disposal, with the chargeable gain calculation reflecting the rebased base cost.

Worked example: an eligible non-dom and a Lisbon commercial property

Take a hypothetical eligible non-dom, Mr Almeida (carried forward from the TRF page). UK-resident since 2008-09; non-UK-domiciled throughout; made active s.809B claims in multiple years 2017-18 to 2024-25 (so condition 5 satisfied). He owns offshore investments including a non-UK situs commercial property in Lisbon, acquired in 2010 for £400,000.

Condition analysis. Condition 1: held on 5 April 2017, yes (acquired 2010). Condition 2: disposing in 2026-27, yes (on or after 6 April 2025). Condition 3: not UK-situs at any time 6 March 2024 to 5 April 2025, yes (Lisbon commercial property is Portuguese-situs throughout). Condition 4: not UK-domiciled in any pre-2025-26 tax year, yes (Portuguese domicile-of-origin, never elected UK domicile). Condition 5: active s.809B claim in 2017-18 to 2024-25, yes (multiple years). All five conditions satisfied; the rebasing election is available for this disposal.

Valuation. The Lisbon property's market value at 5 April 2017 is determined by a formal valuation report: based on Portuguese commercial property market evidence, the agreed 2017 value is £900,000. At disposal in 2026-27, the property sells for £1,200,000.

Without the rebasing election. Standard TCGA calculation: chargeable gain = £1,200,000 minus £400,000 = £800,000. At higher-rate CGT (24% non-residential): £192,000 of UK CGT.

With the rebasing election. Rebased base cost = £900,000 (5 April 2017 market value). Chargeable gain = £1,200,000 minus £900,000 = £300,000. At 24%: £72,000 of UK CGT.

Rebasing saving on this disposal: £120,000. The election is binding for this disposal but does not affect later disposals of other assets in Mr Almeida's portfolio; each is independently elected based on its own calculation.

What the rebasing election does not cover

The rebasing election is specifically for non-UK situs assets held since 5 April 2017 by individuals meeting the five-condition test. It does not cover:

  • UK property. Excluded by condition 3. UK land disposals by non-residents fall under the NRCGT regime under TCGA 1992 s.1A + Schedules 1A, 1B, 4AA, which has its own rebasing dates: 5 April 2015 for residential; 5 April 2019 for non-residential. The NRCGT rebasing is not optional in the same way; the default uses the 2015 or 2019 reference dates with limited alternatives.
  • Assets acquired post-5-April-2017. Excluded by condition 1. The historic acquisition cost applies; no rebasing.
  • UK-domiciled-of-origin individuals. Excluded by condition 4. Even if the individual was non-UK-resident during the relevant period, UK-domiciled-origin disqualifies.
  • Non-doms who only used s.809D / s.809E automatic remittance basis. Excluded by condition 5 if they never actively claimed under s.809B in 2017-18 to 2024-25.

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The interaction with TRF and FIG

The Sch 11 rebasing election operates on the CGT base cost; the TRF operates on income tax / CGT remittance treatment of pre-2025-26 unremitted balances; the FIG operates on income tax / CGT relief for qualifying new residents. The three reliefs are independent and can stack where eligibility is satisfied for each.

For a typical eligible non-dom: Sch 11 rebasing applies to specific non-UK situs disposals (reducing the CGT base of the chargeable gain); TRF applies to pre-2025-26 unremitted balances (designating at favourable rates to crystallise the legacy income tax / CGT position); FIG does NOT apply (the individual fails the s.845B(1)(c) 10-year prior-non-residence test because they were UK-resident pre-2025-26). The eligible-non-dom population is therefore primarily a Sch 11 + TRF combination; FIG is generally for the new-arrival population that does not overlap with Sch 11 eligibility.

Sessions advising should run each relief separately and stack where applicable. The combined relief value can be substantial for legacy non-doms with both unremitted offshore balances (TRF candidate) and pre-2017 non-UK situs assets with substantial latent gain (Sch 11 candidate).

HMRC enquiry pattern on Sch 11 elections

HMRC's enquiry approach on Schedule 11 elections will focus on three areas. First, the five-condition eligibility analysis: HMRC will verify each condition independently, with specific focus on condition 3 (asset situs throughout 6 March 2024 to 5 April 2025) and condition 5 (active s.809B claim with neither s.809D nor s.809E applying). Documentation of the situs history and the historic claim record should be retained.

Second, the 5 April 2017 valuation. For non-quoted shares, illiquid investments, or unique non-UK real estate, the valuation will need supporting market evidence (comparable sales, broker reports, asset-specific valuation methodology). HMRC's valuation challenge typically goes through the Shares and Assets Valuation team for shares and the District Valuer for real estate; preparation for that challenge should be built into the election workflow.

Third, the irrevocability discipline. Once the election is made for a disposal, HMRC may scrutinise the calculation closely (because the taxpayer cannot un-elect if errors are found). Sessions advising should ensure the calculation is fully evidenced at the time of election, with the valuation report and the supporting condition-by-condition eligibility documentation filed alongside the self-assessment return.

How the rebasing relates to NRCGT rebasing for UK land

The FA 2025 Sch 11 rebasing election operates only on non-UK situs assets and is optional per-disposal. UK land disposals by non-residents follow a separate rebasing architecture under TCGA 1992 s.1A and Schedules 1A, 1B, 4AA (rewritten by Finance Act 2019). The two regimes differ structurally in three ways.

First, the rebasing date. Sch 11 uses 5 April 2017. NRCGT uses 5 April 2015 for residential land or 5 April 2019 for non-residential land, depending on which category caught the disposal at the time NRCGT was extended. The dates reflect each regime's policy origin: 2017 was a non-dom-reform-relevant date; 2015 and 2019 were the NRCGT-extension dates for residential and non-residential UK land respectively.

Second, the election structure. Sch 11 rebasing is opt-in (the individual elects on a per-disposal basis); the historic cost is the default. NRCGT rebasing is the default for assets held on the relevant 2015 or 2019 date; alternatives (straight-line apportionment or full historic gain) are available by election. The defaults run in opposite directions.

Third, the eligibility gateway. Sch 11 requires the five cumulative conditions including non-dom status and an active s.809B claim. NRCGT applies broadly to any non-resident person disposing of UK land regardless of domicile or historic claim record; the gateway is purely the situs and residence status at disposal.

For a departing UK landlord with a mixed portfolio (UK BTL plus non-UK real estate held since pre-2017), the two regimes operate in parallel: NRCGT handles the UK BTL disposals; Sch 11 (if all five conditions are met) handles the non-UK real estate disposals.

Timing the disposal: pre-5-April-2028 considerations

The Sch 11 rebasing election has no sunset date in the legislation: the election is available for any qualifying disposal made on or after 6 April 2025 indefinitely. There is no equivalent of the TRF window-close at 5 April 2028. However, two timing considerations affect when to make qualifying disposals.

First, the TRF interaction. For an eligible non-dom with both Sch 11 candidates (non-UK situs pre-2017 assets) AND TRF candidates (pre-2025-26 unremitted offshore foreign income), making both moves in the same self-assessment year may be cash-flow lumpy: TRF charge plus CGT on the rebased gain land together in the January payment cycle. Spreading the Sch 11 disposals across years 2025-26 to 2027-28 to align with TRF designation timing can ease the cash flow.

Second, the asset's continuing-non-UK-situs requirement. Condition 3 looks at 6 March 2024 to 5 April 2025; for an asset that was non-UK situs throughout that period, condition 3 is permanently satisfied (the historic situs cannot be undone). But the practical valuation and disposal mechanics depend on the asset's situs at the disposal date. For a non-UK situs asset moved back to the UK after 5 April 2025 (perhaps for operational reasons or family relocation), condition 3 is still satisfied (the reference period has passed) but the disposal may now be a UK-situs disposal subject to UK CGT under standard rules.

What this page does not cover

This page is the FA 2025 Sch 11 rebasing election standalone. It does not cover: the NRCGT regime for UK land disposals (a separate page covers the NRCGT mechanics); the FIG regime for new arrivals (the FIG eligibility pillar and election-mechanics pages cover); the TRF for legacy non-dom unremitted balances (the TRF pillar and qualifying-capital companion cover); the IHT LTR test (the s.6A pillar covers); the offshore-trust s.48ZA mechanics (the EPT companion covers).

Statutory and HMRC sources cited above: Finance Act 2025 Schedule 11; Finance Act 2025 section 42; ITA 2007 section 809B (active remittance-basis claim); ITA 2007 section 809D (auto-remittance basis); ITA 2007 section 809E (small-foreign-income exception); TMA 1970 section 42; TCGA 1992 section 1A (NRCGT for UK land); HMRC Residence, Domicile and Remittance Manual.