491. Conversion etc of securities held as circulating capital.

The following provisions apply for the purpose of calculating the profits of a company's trade if: (1) the company carries on a banking business, an insurance business or a business consisting wholly or partly of dealing in securities1; (2) a specified transaction2 occurs in relation to securities ('the original holding'); and (3) a profit on the sale of the securities would be brought into account in calculating the trading profits of that business3. These provisions do not apply to securities in respect of which unrealised profits or losses, calculated by reference to the fair value of the securities at