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The Afghanistan flag was raised as the Union Jack was lowered over Camp Bastion in the southwestern Helmand Province.
At the height of the coalition’s war against the Taliban and Al-Qaeda, 40,000 troops were based in Helmand.
The handover marks the end of British combat operations in Afghanistan.
Nato and US forces are also concluding their military presence in Afghanistan this year.
However, the US will maintain a force of 9,800 personnel as part of a security deal known as the Bilateral Security Agreement or BSA.
The BSA was signed by the new national security adviser, Hanif Atmar, who was appointed to the post on September 30, the day the new government was sworn in.
Former President Hamid Karzai had refused to sign the BSA, but both of his successors had pledged to commit to a US presence in the country.
President Ashraf Ghani Ahmadzai replaced Karzai in late September and appointed his former rival Abdullah Abdullah the country’s new chief executive officer.
Source: Agencies