*12.6 Craig began trading on 1 August 2014 and has the following results:

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

£ £

year to 31 July 2015 5,460 1,140 year to 31 July 2016 (27,400) 1,920 Before commencing to trade, Craig had only investment income. He sold all of his investments in October 2015 (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:

£

2012-13 4,150 2013-14 4,940 2014-15 3,190 2015-16 (to October 2015) 2,510

(a) Compute Craig's trading income for 2014-15 to 2016-17.

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