diff --git a/spacy/tests/gold/test_biluo.py b/spacy/tests/gold/test_biluo.py
new file mode 100644
index 000000000..526bb0d61
--- /dev/null
+++ b/spacy/tests/gold/test_biluo.py
@@ -0,0 +1,48 @@
+from __future__ import unicode_literals
+
+from ...gold import biluo_tags_from_offsets
+from ...vocab import Vocab
+from ...tokens.doc import Doc
+
+import pytest
+
+
+@pytest.fixture
+def vocab():
+    return Vocab()
+
+
+def test_U(vocab):
+    orths_and_spaces = [('I', True), ('flew', True), ('to', True), ('London', False),
+                        ('.', True)]
+    doc = Doc(vocab, orths_and_spaces=orths_and_spaces)
+    entities = [(len("I flew to "), len("I flew to London"), 'LOC')]
+    tags = biluo_tags_from_offsets(doc, entities)
+    assert tags == ['O', 'O', 'O', 'U-LOC', 'O']
+
+
+def test_BL(vocab):
+    orths_and_spaces = [('I', True), ('flew', True), ('to', True), ('San', True),
+                        ('Francisco', False), ('.', True)]
+    doc = Doc(vocab, orths_and_spaces=orths_and_spaces)
+    entities = [(len("I flew to "), len("I flew to San Francisco"), 'LOC')]
+    tags = biluo_tags_from_offsets(doc, entities)
+    assert tags == ['O', 'O', 'O', 'B-LOC', 'L-LOC', 'O']
+
+
+def test_BIL(vocab):
+    orths_and_spaces = [('I', True), ('flew', True), ('to', True), ('San', True),
+                        ('Francisco', True), ('Valley', False), ('.', True)]
+    doc = Doc(vocab, orths_and_spaces=orths_and_spaces)
+    entities = [(len("I flew to "), len("I flew to San Francisco Valley"), 'LOC')]
+    tags = biluo_tags_from_offsets(doc, entities)
+    assert tags == ['O', 'O', 'O', 'B-LOC', 'I-LOC', 'L-LOC', 'O']
+
+
+def test_misalign(vocab):
+    orths_and_spaces = [('I', True), ('flew', True), ('to', True), ('San', True),
+                        ('Francisco', True), ('Valley.', False)]
+    doc = Doc(vocab, orths_and_spaces=orths_and_spaces)
+    entities = [(len("I flew to "), len("I flew to San Francisco Valley"), 'LOC')]
+    tags = biluo_tags_from_offsets(doc, entities)
+    assert tags == ['O', 'O', 'O', '', '', '']