13U.K.In section 210A of TCGA 1992 (ring fencing of losses), after subsection (10) insert—
“(10A)But where the BLAGAB profits for an accounting period are nil, the policy holders' share of the chargeable gains or allowable losses accruing in the accounting period—
(a)if there are Case I profits of the accounting period in respect of its life assurance business, is nil, and
(b)otherwise, is such proportion of the chargeable gains or allowable losses as is just and reasonable;
and for this purpose there are Case I profits if there are profits computed in accordance with the provisions applicable to Case I of Schedule D after making adjustments in respect of losses in accordance with section 85A(4) of the Finance Act 1989.”
14U.K.In section 755A of ICTA (treatment of chargeable profits and creditable tax apportioned to life assurance company), after subsection (11B) insert—
“(11BA)But where the BLAGAB profits for the relevant accounting period are nil, the relevant fraction—
(a)if there are Case I profits of the accounting period in respect of its life assurance business, is nil, and
(b)otherwise, is such fraction as is just and reasonable;
and for this purpose there are Case I profits if there are profits computed in accordance with the provisions applicable to Case I of Schedule D after making adjustments in respect of losses in accordance with section 85A(4) of the Finance Act 1989.”
15U.K.The amendments made by paragraphs 13 and 14 have effect in relation to accounting periods beginning on or after 1 January 2008 and ending on or after 12 March 2008.