TXF6 UK

Question 5self emp. Note 1,2,4

Patience was born on 31 December 1954. She retired on 31 December 2014, and on that date ceased employment and self-employment. The following information is available in respect of the tax year 2014–15:

Self-employment
(1) Patience was self-employed as a private tutor. Her trading profit for the year ended 31 July 2014 was £14,800. This figure is after taking account of capital allowances.

(2) Patience’s trading profit for the final five-month period of trading from 1 August to 31 December 2014 was £6,900. This figure is before taking account of capital allowances.

(3) The tax written down value of the capital allowances main pool at 1 August 2014 was £2,200. On 10 August 2014, Patience purchased a laptop computer for £1,700.

On the cessation of trading, Patience personally retained the laptop computer. Its value on 31 December 2014 was £1,200. The remainder of the items included in the main pool were sold for £800 on 31 December 2014.

(4) Patience has unused overlap profits brought forward of £3,700.

Required:
What is the taxable trading profit on cessation?

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