In my example you'd still be making a £144k profit. Maybe deduct SD as a maintenance cost or scrap SDLT altogether. As for inflation, cry me a river. You'd have to have pretty high inflation to cancel our a £144k cash profit over 10 years or so. Besides, it's not cash you had for that ten years. The gain only appears when you realise the equity in your property.
We have had really high inflation though. The 144k cash profit is exactly because there has been ridiculous inflation in house prices, so the next house you buy costs lots more too. Do you count selling one house to buy a bigger one "realisation"?
In my example you'd still be making a £144k profit. Maybe deduct SD as a maintenance cost or scrap SDLT altogether. As for inflation, cry me a river. You'd have to have pretty high inflation to cancel our a £144k cash profit over 10 years or so. Besides, it's not cash you had for that ten years. The gain only appears when you realise the equity in your property.