PART 2

Insurance companies carrying on long-term business
CHAPTER 3

The I - E basis

Special rules applying to I - E basis

Separate property businesses for BLAGAB etc
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1
This section modifies the rules in sections 208 and 209 of CTA 2009 (basic meaning of UK and overseas property business) for the purpose of applying the I - E rules in relation to an insurance company.
2
The company is treated as carrying on separate UK property businesses or overseas property businesses in accordance with the following provisions.
3
The exploitation of land held otherwise than for the purposes of the company's long-term business is treated as a separate business from the exploitation of land held for those purposes.
4
In the case of the exploitation of land held for the purposes of the company's long-term business, each of the following is treated as a separate business—
a
the exploitation of land which is matched to BLAGAB liabilities of the company,
b
the exploitation of land which is matched to other long-term business liabilities of the company, and
c
the exploitation of land so far as it is not matched to long-term business liabilities of the company.
5
In the case of land part of which is matched to a BLAGAB liability or other long-term business liability, only the part of the land in question is to count for the purposes of this section as matched to the liability in question.
6
In this section “land” means any estate, interest or right in or over land.