Section 210B | Disposal and acquisition of section 119 or 120 securities ^F1

(1)Subsections (2) to (4) below apply in a case where, within a period of 10 days, an insurance company disposes of a number of section 119 or 120 securities and (whether subsequently or previously) acquires a number of section 119 or 120 securities if—^F1F2

(a)the securities disposed of decrease the size of a chargeable section 119 or 120 holding,^F1F3

(b)the securities acquired increase the size of the same chargeable section 119 or 120 holding, and^F1F3

(c)(apart from this section) an allowable loss would accrue on the disposal.^F1

(2)The securities disposed of shall be identified with the securities acquired.^F1

(3)The securities disposed of shall be identified with securities acquired before the disposal rather than securities acquired after the disposal and—^F1

(a)in the case of securities acquired before the disposal, with those acquired later rather than those acquired earlier, and^F1

(b)in the case of securities acquired after the disposal, with those acquired earlier rather than those acquired later.^F1

(4)Where securities acquired could be identified with securities disposed of either at an earlier or at a later date, they shall be identified with the former rather than the latter; and the identification of securities acquired with securities disposed of on any occasion shall preclude their identification with securities comprised in a later disposal.^F1

(5)Subsections (2) to (4) above have effect subject to section 105(1).^F1

(6)Subsections (2) to (4) above do not apply to—^F1

(a)securities which are assets within section 212(1). ...^F1F4F5

(b)Repealed^F5F1

(7)Subsections (2) to (4) above do not apply if—^F1

(a)the securities disposed of are assets wholly matched to BLAGAB liabilities and the assets are appropriated to a BLAGAB internal linked fund,^F1F6

(b)the securities acquired are, on acquisition, appropriated to that or another internal linked fund, and^F1

(c)the disposal and acquisition are made with a view to adjusting the value of the assets of that fund, or of those funds, in order to match its or their liabilities.^F1

(8)In this section—^F1F7

“BLAGAB internal linked fund” means an internal linked fund all the assets appropriated to which are matched wholly to BLAGAB liabilities,

“chargeable section 119 or 120 holding” means a holding which is a separate holding as a result of section 119(1)(a), (c) or (d) or section 120(1)(a), (c) or (d) of the Finance Act 2012 (and section 121(1) and (2) of that Act),

“internal linked fund”, in relation to an insurance company, means an account—

(a)to which assets matched to the company's life assurance liabilities are appropriated by the company, and

(b)which may be divided into units the value of which is determined by the company by reference to the value of those assets, and

“section 119 or 120 securities” means securities within the meaning of section 119 or 120 of the Finance Act 2012 (see section 121(6)).