12.1 Sally, who has been trading for many years, incurs an adjusted trading loss of£40,000 in the year to 31 December 2016.

(a) What is her trading income for 2016-17?

(b) If she makes no claim in relation to her trading loss, how will it be relieved?

(c) How will the loss be relieved if she does make a claim?

12.2 Jane is self-employed. Her recent adjusted trading profits/(losses) are:

£

year to 31 May 2013 (18,860)

year to 31 May 2014 4,710 year to 31 May 2015 6,210 year to 31 May 2016 14,810 Jane has other income of £6,000 per annum. Assuming that the trading loss is carried forward and set against future trading profits, calculate her net income (i.e. total income less reliefs) for tax years 2013-14 through to 2016-17.