PART 2Insurance companies carrying on long-term business
CHAPTER 4Apportionment rules for I - E charge
Allocation of chargeable gains and allowable losses on disposals of assets
100Assets wholly or partly matched to BLAGAB liabilities
1
If, immediately before the disposal, the whole of the asset was matched to a BLAGAB liability, the whole of the gain or loss is referable to the company's basic life assurance and general annuity business.
2
If, immediately before the disposal, a part of the asset was matched to a BLAGAB liability, the appropriate portion of the gain or loss is referable to the company's basic life assurance and general annuity business.
3
“The appropriate proportion” means the proportion equal to the proportion of the asset matched to the BLAGAB liability.
4
If, as a result of Chapter 8, there is a disposal of a part of an asset where the part concerned is matched to a BLAGAB liability, the whole of the gain or loss is referable to the company's basic life assurance and general annuity business.
5
The concept of the whole or a part of an asset being matched to a BLAGAB liability is explained by section 138.