Pink, a shipping agent, ceased trading on 30 September 2020 after 30 years in business. Her final accounts were for the period 1 July 2019 to 30 September 2020 (15 months). Her profits before deduction of capital allowances were 80,000. Details of the written down values at 1 July 2019, and additions and disposals during the final period for capital allowances were:

Written down values at 1 July 2019

General pool -

Special rate pool (One asset BMW car with 30% private use) 23,000

Additions - all in January 2020

Office equipment and furniture 2,000

Mercedes car with CO2 emissions of 180 g/km and 30% private use) 41,000

Disposal - January 2020

BMW car in Special rate pool with 30% private use) (11,000)

Disposals - assets appropriated by Pink on 30 September 2020 market value

Office equipment and furniture 500

Mercedes car with CO2 emissions of 180 g/km and 30% private use) 35,000

Pinks tax-adjusted profits (after capital allowances deduction) for the year ended 30 June 2019 was 48,000. Her overlap profits brought forward at 6 April 2019 were 27,000.

From 6 April 2021, Pink wishes to engage more fully in her hobby of buying and selling ceramic dolls on the internet. She is concerned that she may be trading under the badges of trade tests.

Required - Calculate the following:

1. The capital allowance claim for the 15 months to 30 September 2020 - show the deduction to the profits of 60,000. (12 marks)
2. Profit assessments for the tax years 2019/20 and 2020/21. Detail the relief of overlap profits. (3 marks)