asked the Chancellor of the Exchequer what would be the saving in 1983–84 if the tax relief on mortgage interest were reduced to the same rate as that on life insurance premiums.
The saving in a full year at 1982–83 income levels and current mortgage interest rate levels is estimated at £1,100 million. As a result of the fall in interest rates, this figure has been revised downwards from the estimate given in my answer to the hon. Member for Barking (Miss Richardson) on 19 April.—[Vol.22, c. 8.] The estimate does not include the effect of corresponding change in the option mortgage scheme. Estimates for 1983–84 of the total cost of mortgage interest relief, and
Tax year
| ||
1981–82
| 1982–83
| |
| Tax free income at 1949–50 prices (index) 1949–50=100 | 68·5 | 72·2 |
| Tax free income as percentage of average income* | 41·1 per cent. | 42·5 per cent. |
| Break even point at current prices | 5,565 | 6,237 |
| Break even point at 1949–50 prices (index) 1949–50=100 | 93·2 | 97·5 |
| Break even point as percentage of average manual earnings | 83·2 per cent. | 85·5 per cent. |
* Average income for the financial year is defined as the average earnings of a full time adult male worker plus child benefit as appropriate.
† Two children under 11; one child aged between 11 and 15; one child 16 or over.