Craig began trading on 1 August 2020 and has the following results:

Adjusted trading profits/(losses) Capital allowances before capital allowances claimed

£ £

year to 31 July 2021 5,460 1,140 year to 31 July 2022 (27,400) 1,920 Before commencing to trade, Craig had only investment income. He sold all of his investments in May 2021 (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:

£

2018-19 9,150 2019-20 9,940 2020-21 7,690 2021-22 (to May 2021) 510

(a) Compute Craig's trading income for 2020-21 to 2022-23.

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