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Mortgage Tax Relief

Volume 164: debated on Monday 8 January 1990

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To ask the Chancellor of the Exchequer whether he will publish a table on the same general basis as that provided in his written reply to the hon. Member for Great Grimsby on 29 July 1988, Official Report, columns 728–30, on the cost to the Exchequer of mortgage interest relief for higher-rate taxpayers in a full year at the current basic rate of mortgage interest; and if he will add a forecast for 1990–91 on the same basis, allowing for separate taxation of husbands and wives.

Estimates of excess over basic rate relief on mortgage interest in 1989–90, based on a projection of the 1987–88 survey of personal incomes, are given in the table. Estimates for 1990–91 are not available.

Range of total income (£)

Number of tax units (Thousand)

Gross amount of interest qualifying for relief (£ million)

Cost of excess over basic rate relief (£ million)

Average basic rate relief (£)

Average excess over basic rate relief (£)

Number of non-aged tax units (Thousand)

25,001–30000

26582560780220265
30,001–40,0004951,585190800380490
40,001–50,00018560085810460180
Over 50,000210695105840500200
Total1,1753,7604408003701,155

1 Includes about 250,000 tax units who are kept out of higher rate tax by this relief.

2 Less than £2·5 million.

To ask the Chancellor of the Exchequer whether he will publish a table showing by range of income the numbers of single persons and married couples (a) with and (b) without wife's earned income below and above age 65 years in receipt of mortgage interest relief and the average relief per mortgagee in each case in a full year at the current basic

Single people and married couples receiving mortgage interest relief by range of total income 1989–90
Non-aged mortgagorsAged mortgagors
range of total incomeNumber with mortgage interest relief ThousandsAverage tax cost of relief per mortgagor £Number with mortgage interest relief ThousandsAverage tax cost of relief per mortgagor £
Singles
Up to £5,00024044020280
£5,001 to £10,00077061020350
£10,001 to £15,00065074010570
£15,001 to £20,0004008601530
£20,001 to £30,0002909401410
Over £30,0001101,49011,050
Total2,45075060410
Married couples with wife earning
Up to £5,0004050010200
£5,001 to £10,00021055010500
£10,001 to £15,00070062010450
£15,001 to £20,00098070010420
£20,001 to £30,0001,0708001260
Over £30,0006401,24010800
Total3,66080050480
Married couples with wife not earning
Up to £5,00012047020390
£5,001 to £10,000590610402·50
£10,001 to £15,00094065010160
£15,001 to £20,00062076010220
£20,001 to £30,00049082010320
Over £30,0002101,46010970
Total2,97074090330
1 Less than 5,000.
Figures may not add due to rounding.