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Mortgage Interest Relief

Volume 82: debated on Monday 8 July 1985

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asked the Chancellor of the Exchequer if, pursuant to the answer of 16 May at columns 189–90, he will provide the figures for mortgage interest tax relief for 1983–84 onwards, excluding the estimated cost of relief in respect of mortgages previously under the option mortgage scheme.

[pursuant to his reply, 17 June 1985, c. 28]: From April 1983 the arrangements for paying mortgage interest relief at source (MIRAS) subsumed the option mortgage scheme. From the available information, it is not possible to distinguish the cost of relief for those mortgages which were previously under the option mortgage scheme. But the hon. Member may find it helpful to have the costs of the option mortgage scheme for years before the introduction of MIRAS, expressed at 1984–85 prices. These are shown in the following table, together with the cost of mortgage interest relief distinguishing, for 1983–84 and 1984–85, the provision on class XIII Vote 7 for mortgage interest relief at source given to non-taxpayers.

£ million at 1984–85 prices*
Mortgage interest tax reliefOption mortgage schemeTotal
1979–802,2002902,490
1980–812,5503002,850
1981–822,4003102,710
1982–832,3503352,685
1983–84†2,900‡202,920
1984–85†3,5003,500
* The figures in this table have been expressed at 1984–85 prices using he retail prices index.
† Includes expenditure on relief in respect of non-taxpayers (class XIII Vote 7) at £70 million for 1983–84 and £85 million for 1984–85 (at 1984–85 prices).
‡ Provision to meet claims in respect of earlier years.