trading loss—carryback? carryforward on the relief?????

Individual Losses

Carry forward relief – Trading losses can be carried forward against first available future trading profits from the same trade

Carry back relief – Loss may be carried back to previous 12 months of the loss period and relieved against TOTAL INCOME (no limit)

Extended carry back relief– Remaining losses after carry back relief can be carried back a further 24 months against TRADING PROFITS ONLY (£50,000 limit). The loss must be carried back to a maximum extent, and therefore personal allowance may be lost.

The year of loss is the year ended 31 December 2009 (aka tax year 2009/10)
= £108,000.

We use use the carry back relief against TOTAL INCOME of the previous 12 months of the loss period.(no limit)
Year ended 31 December 2008 (aka tax year 2008/09)
Total income = Trading Income + Other Income – Qualifying Interest
= £40,000 + £5,000 – £2,800
= £42,200

We can then use the extended carry back relief to a further 24 months on TRADING PROFITS ONLY (£50,000 limit)
Year ended 31 December 2007 (aka tax year 2007/08) £30,000
Year ended 31 December 2006 (aka tax year 2006/07) £20,000 (capped)
So we have £50,000-£20,000 = £30,000 of total income left for 2006/07 which we can deduct personal allowance from.

So now calculate how much has been relieved using carry back and extended carry back.

2008/09 Carry back £42,200
2007/08 Extended carry back £30,000
2006/07 Extended carry back £20,000

= £92,200

The total loss available for relief is £108,000
So £108,000 – £92,200
= £15,800 is available for carrying forward to the first available trading profits of the same trade.

Hope this helps! You may also find video lectures for most of the F6 examples here https://opentuition.com/acca/f6/free-online-lectures-for-paper-f6-uk-taxation/