Melissa is a sole trader. Her capital gains and capital losses for 2019-20 are£27,000 and £1,000 respectively. She also has capital losses brought forward from 2018-19 of £12,900 and unrelieved trading losses of £18,500 which are eligible for relief against capital gains in 2019-20.

Required: Calculate Melissa’s taxable gains for 2019-20, assuming that:

(a) a claim to relieve trading losses against capital gains is not made.

(b) a claim to relieve trading losses against capital gains is made.