asked the Chancellor of the Exchequer if he will list in the Official Report the extent of mortgage interest tax relief for the latest available year; if this sum can be broken down between those earning (a) up to £3,000 a year, (b) £3,000-£4,000 a year, (c) £4,500 to £10,000 a year and (d) £10,000 and above; and if he will list the number of taxpayers in each income group.
The estimated cost of tax relief on mortgage interest payments for the year 1974–75 is £700 million. Estimates of the distribution of this cost are not available by range of earnings but are given below for ranges of total net income. The available information about numbers of taxpayers receiving mortgage interest relief relates only to building society mortgages and does not include mortgages with local authorities, banks and insurance companies, although the cost of giving relief in such cases is included in the total cost quoted above.
| COST OF LIFE ASSURANCE RELIEF | |||||||||
| £ million | |||||||||
| Total net income*£ p.a. | 1960–61† | 1964–65 | 1970–71 | 1971–72 | 1972–73 | 1973–74 | 1974–75 | ||
| Under 1,000 | … | … | 18 | 10 | 8 | 6 | 6 | 6 | |
| 1,000–2,000 | … | … | 31 | 43 | 41 | 37 | 29 | 24 | |
| 2,000–5,000 | … | … | 12 | 44 | 54 | 68 | 78 | 108 | |
| 5,000–10,000 | … | … | 3 | 9 | 12 | 13 | 20 | 36 | |
| Over 10,000 | … | … | 2 | 4 | 5 | 6 | 7 | 16 | |
| Total | … | … | 53 | 66 | 110 | 120 | 130 | 140 | 190 |
| * As defined in Inland Revenue Statistics 1974, page 41. | |||||||||
| † Breakdown by income not available. | |||||||||
asked the Chancellor of the Exchequer (1) if he will list in the Official Report the extent of mortgage interest tax relief for 1945, 1950, 1960, 1970 and all subsequent years; and if he will also present the loss in revenue as between standard rate and higher rate taxpayers for each of the years;
Building Society Mortgages
| |||
Total net income *
| Total Cost
| Cost
| Number claiming relief
|
| (£p.a.) | (£ million) | (£ million) | ('000) |
| Under 3,000 | 279 | 231 | 2,210 |
| 3,000–4,000 | 180 | 150 | 1,250 |
| 4,000–10,000 | 207 | 177 | 1,080 |
| Over 10,000 | 34 | 30 | 60 |
| 700 | 588 | 4,600 | |
* As defined in Inland Revenue Statistics 1974, page 41. | |||
asked the Chancellor of the Exchequer what was the loss in rvenue in granting tax relief on (a) national insurance contributions and (b) life assurance premiums; and if he will break down these figures between standard rate and higher rate taxpayers for 1945,1950,1960,1970 and all subsequent years.
Tax relief to insured persons on their own national insurance contributions applied only for the years from the start of the scheme in 1948 up to 1964–65. The cost in 1960–61 was £48 million. An estimate for 1950 is not available. I regret that there is no information on the breakdown of the cost between relief at standard rate and against surtax.The available figures for the cost of tax relief on life assurance premiums by range of income are given below. This relief is available only against tax at the basic rate (standard rate for years before 1973–74)(2) if he will list in the
Official Report the extent of mortgage interest tax relief in 1945, 1950, 1960, 1970 and all subsequent years; and if he will also present the data as between standard rate and higher rate taxpayers.
The available estimates are given below. I regret that for the years prior to 1973–74 information on the exact breakdown of the cost between standard rate and surtax payers is not available, but it is thought that relief to surtax payers formed about 5 per cent. of the total.
| Cost (£ million) | Cost of relief to | ||
| Basic rate taxpayers | Higher rate* taxpayers | ||
| 1945–46 | 10 | — | — |
| 1950–51 | 15 | — | — |
| 1960–61 | 70 | — | — |
| 1970–71 | 300 | — | — |
| 1971–72 | 340 | — | — |
| 1972–73 | 390 | — | — |
| 1973–74 | 500 | 470 | 30 |
| 1974–75 | 700 | 610 | 90 |
| * Including the element of relief at the basic rate to a higher rate taxpayer. | |||
asked the Chancellor of the Exchequer what would be the effect on net incomes if the ceiling on national insurance contributions was abolished for persons earning up to (a) £4,000, (b) £5,000, (c) £7,500, (d) £10,000 and (e) above £10,000; and what would be the saving to the Exchequer in each case.
| Building Society | Mortgage Interest | Life Assurance Premiums | |||||
| Total net income* | Average tax relief | Numbers claiming relief | Average tax relief | Numbers claiming relief | |||
| (£p.a.) | £ | '000 | £ | '000 | |||
| Under 1,000 | … | … | … | 100 | 60 | 6 | 925 |
| 1,000–2,000 | … | … | … | 97 | 620 | 7 | 3,310 |
| 2,000–3,000 | … | … | … | 108 | 1,530 | 10 | 4,415 |
| 3,000–5,000 | … | … | … | 125 | 1,825 | 15 | 4,100 |
| 5,000–10,000 | … | … | … | 196 | 505 | 41 | 880 |
| Over 10,000 | … | … | … | 560 | 60 | 110 | 145 |
| * As defined in Inland Revenue Statistics 1974, page 41. | |||||||