Cate requires advice on the tax implications of starting to sell items via the internet.

Cate:
– Is resident and domiciled in the UK. She is aged 48.
– Is married to Ravi.
– Runs a successful unincorporated business, D-Designs.
– Receives dividends of £27,000 each year.
– Wants to sell some second-hand books online.

Sale of second-hand books:
– Cate inherited a collection of books from her mother in December 2013.
– Cate intends to sell these books via the internet.
– Some of the books are in a damaged state and Cate will get them rebound before selling them.

Required:
(b) Discuss whether the profit from Cate’s proposed sale of books via the internet will be liable to either income tax or capital gains tax. (5 marks)