Deemed Disposal Rule

Discussion in 'SA2' started by kntg24, Jan 9, 2019.

  1. kntg24

    kntg24 Active Member

    Hi,

    Can anyone explain about Deemed Disposal Rule and how it affect BLAGAB in Chapter 7?

    Thank you.
     
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi

    At the end of each accounting year, any BLAGAB holdings in certain collectives, eg unit trusts, OIECs, offshore funds will be valued at their current market value and 1/7th of the total net chargeable gains will be allowed for in current period's accounts, with the remaining being spread over 6 years. However if the BLAGBAB invests 60% or more in bonds then this rule is overruled.
    Thanks
    Em
     

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