Stamp Duty - why?

It doesn't work like that. Even though gains tax is technically levied on the seller, the seller will expect to fund the tax from his sale proceeds, and set his price accordingly. Therefore the tax is in effect paid indirectly by the buyer.

A random buyer will on average buy from someone whose house has accrued gain equivalent to the average period of ownership (circa 7 years IIRC).

A more frequent than average mover will therefore pay 7 years's worth of gains tax more often than every 7 years. Your system therefore penalises frequent moving.

Such as?

Fair enough. I've thought about it and I think it's rubbish. :-)

Most people only have one home. In any case Nick was talking (I think) only about first homes, since he said it would be fairer that their gains *should* be taxed. I presume he knows that they are not taxed, and that gains on second homes are taxed.

It is the market that sets the price not the seller and the seller does pay the tax.

Anyway it is a diversion to discuss if it is the seller or the buyer pays the tax. The tax is on the transaction and that is what counts. The more transactions the more tax.

I don't understand your comment about the system penalising frequent moving even by your logic of the buyer paying the tax. The frequent seller would have a market advantage allowing him to set what would appear to him to be a higher price when he sells.

My apologies I thought this was the way that tax was handled on commercial property. But it is totally out of my experience so I'm happy to be corrected.

Well as you put the smiley I won't have to call you a #*&$ ;o)

Yep. I don't have a second home so I have no need to forget.