Incomes Mr. Frank Field To ask the Chancellor of the Exchequer what was the share of pre and post-tax income going to the top (a) 1 per cent. and (b) 5 per cent. of income recipients from 1970–71 to 1988–89. Mr. Norman Lamont [holding answer 24 June 1988]: Available information is given in the table. The quantile groups have been determined by reference to the distribution of income before and after tax of those single people and married couples for whom the Inland Revenue has records in each year. The figures are based on the----------------------- |Range of total income| ----------------------- | | ----------------------- |Up to £7,000 | ----------------------- |£7,000 to £10,000 | ----------------------- |£10,000 to £13,000 | ----------------------- |£13,000 to £16,000 | ----------------------- |£16,000 to £19,000 | ----------------------- |£19,000 to £22,000 | ----------------------- |£22,000 to £25,000 | ----------------------- |Over £25,000 | ----------------------- |Total | ----------------------- annual surveys of personal incomes. Estimates for 1986–87 and later years are not available on the same basis. However, estimates of the income before and after tax of the top 1 per cent. and top 5 per cent. of income tax payers were given in my reply to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 28 June at column 188. --------- | | --------- |1970–71| --------- |1971–72| --------- |1972–73| --------- |1973–74| --------- |1974–75| --------- |1975–76| --------- |1976–77| --------- |1977–78| --------- |1978–79| --------- |1979–80| --------- |1980–81| --------- |1981–82| --------- |1982–83| --------- |1983–84| --------- |1984–85| --------- |1985–86| --------- Mr. Soley To ask the Chancellor of the Exchequer (1) if he will publish a table showing the average annual value of mortgage interest tax relief in Great Britain at the latest date available to recipients (a) with incomes below £7,000 a year, (b) with incomes between £7,000 and £10,000 a year, (c) with incomes between £10,000 and £13,000 a year, (d) with incomes between £13,000 and £16,000 a year, (e) with incomes between £16,000 and £19,000 a year, (f) with incomes between £19,000 and £22,000 a year, (g) with incomes between £22,000 and £25,000 a year and (h) with incomes above £25,000 a year, and the number of recipients in each group;(2) if he will publish a table showing for each income group the estimated number of mortgagors receiving mortgage interest tax relief in 1988–89, the average annual value of the relief and the total cost for each group. Mr. Norman Lamont [holding answers 27 June 1988]: Provisional estimates for the United Kingdom are given in the table. These are based on projections to 1988–89 of information in the 1985–86 survey of personal incomes and the 1985 family expenditure survey. The estimates include mortgages formerly under the option mortgage scheme which are now subsumed under MIRAS. 1 Single persons and married couples 2 Including about ½ million non-taxpaying tax units Mr. Soley To ask the Chancellor of the Exchequer what was the average annual value of mortgage interest tax relief (a) to first-time buyers and (b) to all recipients (i) in Great Britain and (ii) in each region in each year from 1979 to 1987.-------------------------- | | -------------------------- |Northern | -------------------------- |Yorkshire and Humberside| -------------------------- |North West | -------------------------- |East Midlands | -------------------------- |West Midlands | -------------------------- |East Anglia | -------------------------- |Greater London | -------------------------- |Other South East | -------------------------- |South West | -------------------------- |Wales | -------------------------- |Scotland | -------------------------- |Northern Ireland | -------------------------- |United Kingdom | -------------------------- Following the introduction of MIRAS in April 1983, regional information on the cost of mortgage interest relief cannot he extracted from Inland Revenue records. The regional distribution of mortgage interest can be estimated from the family expenditure survey (FES) but, as the sample size for the FES is relatively small, it is not possible to provide robust estimates of regional trends for the period after 1982–83. Accordingly. the table shows the average value of relief for 1983–84 to 1987–88 for the United Kingdom only.-- || -- Mr. Soley To ask the Chancellor of the Exchequer if he will publish a table of the total cost of mortgage tax relief in Great Britain in each of the years from 1979 to 1987, indicating the amount of spending on mortgage tax relief at each of the higher tax rates of 40 per cent., 50 per cent. and 60 per cent. in each of these years. Mr. Norman Lamont [holding answer 27 June 1988]: Estimates for the United Kingdom of the total cost of mortgage interest tax relief and the cost of relief at rates in excess of basic rate are given for 1979–80 to 1987–88.--------- | | --------- |1979–80| --------- |1980–81| --------- |1981–82| --------- |1982–83| --------- |1983–84| --------- |1984–85| --------- |1985–86| --------- |1986–87| --------- |1987–88| --------- Mr. Norman Lamont [holding answer 27 June 1988]: Estimates for the years 1979–80 to 1982–83 have been derived from the annual surveys of personal incomes and are given in the table. I regret that the information on first-time buyers is not available. 1 Provisional. 2 Includes mortgages formerly under the option mortgage scheme. The following table shows the cost of relief at excess over basic rate in 1987–88 broken down by the marginal tax rate of the beneficiaries of this relief. A breakdown for other years could be provided only at disproportionate cost. ------- |27 | ------- |40 | ------- |45 | ------- |50 | ------- |55 | ------- |60 | ------- |Total| ------- Note: Basic rate taxpayers who would be liable at higher rates if mortgage interest relief were restricted to basic rate relief only. Mr. Soley To ask the Chancellor of the Exchequer if he will publish a table giving the cost of mortgage tax relief for each year from 1967–68 to 1987–88, shown at 1987 prices. Mr. Norman Lamont [holding answer 27 June 1988]: The estimated costs of mortgage interest tax relief in the United Kingdom, at 1987–88 prices, are shown in the table. Figures for 1983–84 onwards include the cost of relief given to non-taxpayers.--------- | | --------- |1967–68| --------- |1968–69| --------- |1969–70| --------- |1970–71| --------- |1971–72| --------- |1972–73| --------- |1973–74| --------- |1974–75| --------- |1975–76| --------- |1976–77| --------- |1977–78| --------- -- || --