(b) Assuming that the income from the sale of the books is not treated as trading income, calculate Bob’s taxableincome and gains for all relevant tax years, using any loss reliefs in the most tax-efficient manner. Youranswer should include an explanation of the loss reliefs available and your reasons for using (or not using)them. (12 marks)Assume that the rates and allowances for 2004/05 apply throughout this part of the question.

(b) Assuming that the income from the sale of the books is not treated as trading income, calculate Bob’s taxable

income and gains for all relevant tax years, using any loss reliefs in the most tax-efficient manner. Your

answer should include an explanation of the loss reliefs available and your reasons for using (or not using)

them. (12 marks)

Assume that the rates and allowances for 2004/05 apply throughout this part of the question.


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