Quote Originally Posted by elZorro View Post
Yes there is, the interest on private properties is an after-tax expense and not partly reclaimed in a set of books. Nor are any other costs like rates, insurance and upkeep/maintenance covered. Domestic and commercial rent/leases generally cover most or all of these costs. People living in their own homes may also spend any savings on house extensions or regular renovation, unlike rentiers. So their real capital gain will be minimal in most situations.
Their real capital gain has hardly been minimal. You know as well as I do that it would be political suicide to tax the prime residence - that's the only reason to exclude it. You also know that home owners have a massive advantage over those who rent over time. Of course they face costs while they have the tax free benefit of a roof over their heads, while landlords receive an income, but are taxed on their profits.
A CGT that is poorly designed is no good to anyone. Properly designed and it would be hard to argue against, provided the revenue was used to lower income tax - the worst tax of all.