Craig began trading on 1 August 2019 and has the following results: (a) Compute Craig's trading income
Question:
Craig began trading on 1 August 2019 and has the following results:
(a) Compute Craig's trading income for 2019-20 to 2021-22.
(b) Explain the trading loss reliefs available to Craig. Which would you recommend?
Transcribed Image Text:
year to 31 July 2020 year to 31 July 2021 Adjusted trading profits/(losses) before capital allowances 2017-18 2018-19 2019-20 2020-21 (to May 2020) 5,460 (27,400) Before commencing to trade, Craig had only investment income. He sold all of his investments in May 2020 (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: Capital allowances claimed 1,140 1,920 9,150 9,940 7,690 510
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