As GIM5020 shows, profits made by an insurer in turning over its investments held on current account are an integral part of its trading receipts.

Where it is an essential feature of the business of a financial concern to vary its investments and turn them to account, the profits or losses on such investments are to be taken into account in computing the trade profits.

No deduction is allowed, though, for any fall in market value below cost at accounting dates before any profit arises (nor would any increase in value be recognised) unless fair value accounting is used (see GIM5180).

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