TXF6 UK

Question 1a self emp. Note 1, 3

On 30 June 2011 Josie Jones, aged 42, ceased self-employment as a graphic designer. On 1 August 2011 she commenced employment with Typo plc as a creative director. The following information is available for the tax year 2011–12:

Self-employment
(1) Josie’s trading profits for the final two periods of trading were as follows:

£
Year ended 30 April 2011 98,200
Two-month period ended 30 June 2011 16,600

Both these figures are before taking account of capital allowances.

(2) The tax written down value of the capital allowances main pool at 1 May 2010 was £13,200. On 21 May 2011 Josie purchased computer equipment for £3,600. All of the items included in the main pool were sold for £7,700 on 30 June 2011, with no item being sold for more than its original cost.

(3) Josie has unused overlap profits brought forward of £41,700.

Required:
What trading profits will be taxed on cessation?

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