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Mortgage Interest Tax Relief

Volume 124: debated on Friday 18 December 1987

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To ask the Chancellor of the Exchequer what representations he has received seeking an alteration to the rules relating to mortgage interest tax relief; and if he will make a statement.

My right hon. Friend continues to receive a number of representations on mortgage interest relief. The level of relief has to be fixed each year and will be considered in framing the Budget proposals.

To ask the Chancellor of the Exchequer if he will publish in the Official Report a table showing, by range of income, estimates for 1987–88 of the number of tax units receiving mortgage interest tax relief, the average value per mortgagor and the total cost of the relief.

[holding answer 17 December 1987]: Provisional estimates are given in the table. These are based on projections to 1987–88 of information in the 1984–85 survey of personal incomes and the 1985 family expenditure survey. The estimates include mortgages formerly under the option mortgage scheme which are now subsumed within MIRAS.

Tax Unit1 receiving mortgage interest relief by range of total income 1987–88.
Range of total income £000Numbers receiving mortgage interest relief2(thousands)Average value of relief to mortgagor (£)Total cost of relief (£ million)
Under 4650370240
4 to 510038040
Fifty per cent, of average male earnings (£113·65 a week in 1987–88)
SingleMarried no childrenMarried both workingMarried two children
£ per week£ per week 1987–88 pricesPer cent, of gross earnings£ per week£ per week 1987–88 pricesPer cent, of gross earnings£ per week£ per week 1987–88 pricesPer cent, of gross earnings£ per week£ per week 1987–88 pricesPer cent, of gross earnings
1978–79
Income tax7·9115·9017·04·428·899·50·000·000·0-1·88-3·78-4·1
NIC3·026·076·53·026·076·53·026·076·53·026·076·5
Total10·9321·9823·67·4414·9616·03·026·076·51·142·292·5
1979–80
Income tax8·9515·5416·45·209·039·50·000·000·0-2·80-4·86-51
NIC3·556·166·53·556·166·53·556·166·53·556·166·5
Total12·5021·7022·98·7515·1916·03·556·166·50·751·301·4
1980–81
Income tax11·7817·5817·97·3310·9411·20·000·000·0-1·21-1·81-1·8
NIC4·436·616·74·436·616·74·436·616·74·436·616·7
Total16·2124·2024·711·7617·5517·94·436·616·73·224·814·9
1981–82
Income tax13·9518·6819·19·5112·7313·01·582·122·2-0·35-0·47-0·5
NIC5·657·567·75·657·567·75·657·567·75·657·567·7
Total19·6026·2426·915·1620·3020·87·239·689·95·307·107·3
1982–83
Income tax14·5818·2318·59·5011·8812·10·480·600·6-1·44-1·80-1·8
NIC6·898·628·86·898·628·86·898·628·86·898·628·8
Total21·4726·8527·316·3920·4920·87·379·229·45·456·816·9
1983–84
Income tax15·3518·3418·09·5311·381·110·000·000·0-2·65-3·17-3·1
NIC7·709·209·07·709·209·07·709·209·07·709·209·0
Total23·0527·5427·017·2320·5820·27·709·209·05·056·035·9
1984–85

Range of total income £000

Numbers receiving mortgage interest relief

2

(thousands)

Average value of relief to mortgagor (£)

Total cost of relief (£ million)

5 to 614041050
6 to 721042080
7 to 8270450120
8 to 9370470170
9 to 10480480230
10 to 121,150540600
12 to 151,600560890
15 to 201,9005801,100
20 to 25730580410
25 to 30330810270
Over 304701,170550
Total8,4005704,750

1 Single persons and married couples.

2 Including about 500,000 non-taxpayers.