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Mortgage Interest (Tax Relief)

Volume 976: debated on Tuesday 18 December 1979

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asked the Chancellor of the Exchequer what is his estimate of the extra tax expenditure cost of mortgage interest tax relief if mortgage interest rates go up to 15 per cent.

If all allowable interest on mortgage were at the rate of 15 per cent. rather than 11¾ per cent. for a full year, it is estimated, on the basis of the information currently available, that the extra cost of mortgage interest relief would be of the order of£375 million, at 1979–80 income levels and tax rates.