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HMRC internal manual

Business Income Manual

Specific deductions: insurance: trading stock and debts

Premiums on policies providing indemnity cover for current assets such as trading stock or trade debts owed to the business are allowable as a deduction. See Green v J Gliksten & Son Ltd [1929] 14 TC 364, where the point at issue concerned an insurance recovery in respect of stock destroyed by fire (see BIM40751).