Craig began trading on 1 August 2018 and has the following results:

Before commencing to trade, Craig had only investment income. He sold all of his investments in May 2019 (realising a large capital gain) so as to raise extra working capital for his own business. His income from investments in recent years has been:

(a) Compute Craig's trading income for 2018-19 to 2020-21.

(b) Explain the trading loss reliefs available to Craig. Which would you recommend?

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year to 31 July 2019 year to 31 July 2020 Adjusted trading profits/(losses) before capital allowances 5,460 (27,400) Capital allowances claimed 1,140 1,920