Capital Allowances Act 2001 section 255

Apportionment of allowances and charges

Section 255 requires life assurance companies with more than one category of long-term business to apportion capital allowances and charges on management assets between those categories.

• The section applies where a life assurance company carries on both basic life assurance and general annuity business (BLAGAB) and non-BLAGAB long-term business.
• Any capital allowance the company is entitled to on a management asset must be split between the two categories of business.
• Any balancing charge the company is liable for on a management asset must likewise be split between the two categories of business.
• The apportionment must be carried out in accordance with the rules set out in Chapter 7 of Part 2 of the Finance Act 2012.