5 Gloria Seaford is UK resident and ordinarily resident but is not domiciled in the UK. Gloria has owned and run a shop selling books, cards and small gifts as a sole trader since June 1992. She purchased her current premises, which were built in 1990, in July 2005 for ￡267,000. Gloria is registered for value added tax. Gloria will be 66 on 4 January 2007 and, with this in mind, on 1 November 2006 she started looking for a buyer for the business so that she could retire. Gloria has received an offer of ￡335,000 for the shop premises from Ned Skillet who intends to convert the building into a restaurant. It can be assumed that the sale will take place on 28 February 2007 and that Gloria will cease to trade on that day. Gloria estimates that on 28 February 2007 she will be able to sell the shelving and other shop fittings to local businesses for ￡1,400 (no item will be sold for more than cost). She has agreed to sell all stock on hand on 28 February 2007 to a competitor at cost plus 5%. This is expected to result in sales revenue of ￡8,300. The only other business asset is a van that is currently used 85% for business purposes. The van is expected to be worth ￡4,700 on 28 February 2007 and Gloria will keep it for her private use. Gloria’s tax adjusted trading profit for the year ended 31 October 2006 was ￡39,245. The forecast tax adjusted trading profit for the period ending 28 February 2007, before taking account of the final sale of the business assets on that date and before deduction of capital allowances, is ￡11,500. Gloria has overlap profits brought forward of ￡15,720. The tax written down value on the capital allowance general pool at 31 October 2006 was ￡4,050. Gloria purchased equipment for ￡820 in November 2006. The tax written down value of the van at 31 October 2006 was ￡4,130. In 2006/07 Gloria will have a taxable retirement pension of ￡4,300 and bank interest of ￡13,500 credited to her bank account. On 1 November 2004 Gloria inherited the following assets from her aunt.