As explained at GIM5150, losses on the disposal of shares enter into an insurer's computation of trade profits.

A general insurer may, for example, buy a parcel of shares shortly before a dividend or other distribution is paid and sell them shortly afterwards. It stands to obtain a tax deduction for the fall in value of the shares which results from the making of the distribution, without paying tax on the dividend itself, an approach known as dividend stripping.

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