I agree - don't introduce a new tax. That is why I say call it all income and tax it on that basis. There has to be a means of getting around the silly intention rule. At present a hairdresser who owns a block of flats, say, then sells after a few years, pays no tax. A builder doing the same thing does. The only way to avoid the distorions as you call them, is to class all gains as income. Think of the positive side - buying would become a lot less competitive meaning we might return to the days where investment flats, commercial etc, will have to be higher yielding to be attractivre to a buyer. Such things have become so competitive that they just make no sense. Taxing profits would deflate the market - although only a little. Most people still earn money in the full knowledge that there efforts will be taxed. The sad part is - most of them do it through being employed. Yuk! :scared: