§ Mr. Kaufmanasked the Chancellor of the Exchequer (1) what was the total cost of tax relief for mortgage interest payments for the years 1978–79 to 1982–83 and the estimate for 1983–84 for England, Wales and Scotland;
(2) what was the cost of mortgage tax relief per mortgagor and per owner-occupied dwelling for the years 1978–79 and 1982–83; and what is the estimate for 1983–84 for England, Wales and Scotland.
§ Sir Geoffrey HoweThe latest estimates are given in the following table. Figures for 1981–82 and later years are provisional; in particular the total figures for individual countries have been derived by applying to the estimated United Kingdom totals the proportions in 1980–81, as later information by country is not available.
The basis of the estimates for 1983–84 is different from that for previous years, following the introduction of the arrangements for giving mortgage interest relief at source, which subsume the previous option mortgage subsidy scheme. The figures exclude the estimated public expenditure element paid to Inland Revenue on account of interest payments by mortgagors whose incomes are too low to receive tax relief. As a consequence of the changed arrangements, the estimate is subject to greater uncertainty than usual; and it is not possible to provide estimates of the average amounts per mortgagor.
50W
Mortage interest tax relief Total cost Per mortgagor receiving tax relief Per owner-occupied dwelling £ million £ £ 1978–79 United Kingdom 1,110 200 100
Total cost Per mortgagor receiving tax relief Per owner-occupied dwelling £ million £ £ England 995 200 100 Wales 40 180 65 Scotland 60 220 90 1979–80 United Kingdom 1,450 265 125 England 1,300 265 130 Wales 45 215 75 Scotland 85 290 125 1980–81 United Kingdom 1,960 355 165 England 1,740 355 170 Wales 65 310 100 Scotland 120 390 165 1981–82 United Kingdom 2,030 350 165 England 1,810 350 170 Wales 70 305 105 Scotland 120 385 170 1982–83 United Kingdom 2,150 370 175 England 1,910 370 180 Wales 70 320 110 Scotland 130 405 175 1983–84* United Kingdom 2,500 n/a 205 England 2,240 n/a 210 Wales 80 n/a 125 Scotland 140 n/a 190 * Estimates include tax relief on former option mortgages, previously receiving option mortagage subsidy, less the estimated public expenditure element—see text above. This reclassification from public expenditure to tax relief accounts for about £250 million of the estimate of tax relief in 1983–84.
§ Mr. Peter Robinsonasked the Chancellor of the Exchequer how much mortgage relief cost in terms of taxes forgone in the years 1980–81 and 1981–82.
§ Mr. RidleyThe latest estimates for the cost of mortgage interest relief are £1,960 million for 1980–81 and £2,030 million for 1981–82.