Corporate tax | Commentary

D7.330 General

Corporate tax | Commentary

Investment dealing companies

D7.330 General

An investment dealing company, often called a finance company, is engaged in buying and selling investments for a profit. Investments include shares, securities, financial futures and options and traded options.

Profits and losses are computed in accordance with the rules for taxing trades, so that investments which are bought as a dealing transaction are trading stock and are valued individually at cost or market value, whichever is the lower1. The value of an investment is a question of fact2.

Receipts of income from investments held on trading account are included in the computation of trading profits,

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