Originally Posted by
belgarion
Excluding the family home from CGT is a little bit like saying income from your primary job is tax free and they'll only tax your second and third jobs.
Excluding the family home will encourage a number of undesirable economic distortions, e.g. over investment in the family home, renting the family home rather than selling, a workforce tied to the family home, the land under family homes not being freed up for better uses, etc.
Keep it simple. And keep the tax only payable when cash is available - otherwise its just a land tax.