HC Deb 10 July 1975 vol 895 cc723-4
7. Mr. McCrindle

asked the Chancellor of the Exchequer what recent representations he has received on tax relief on mortgage interest payments.

Mr. Robert Sheldon

Representations have been received on several aspects of this relief. As the hon. Member will know, the relief was discussed on 26th June in Standing Committee on Clause 27 of the Finance Bill.

Mr. McCrindle

Is the Minister still able today to give a categoric assurance to the millions of people buying their homes on mortgage and the thousands budgeting to do so to the effect that the Government have no intention of withdrawing the tax relief on the interest content of mortgages, upon which so many of them rely?

Mr. Sheldon

The position is quite clear. Mortgage relief stands. We have discussed it recently and we have no intention at present of changing it.

Mr. Beith

What is the Government's justification for continuing relief on the higher rates of tax, which represents a subsidy towards higher rate taxpayers who can take on large mortgages?

Mr. Sheldon

This is another matter. I would remind the hon. Gentleman that the Labour Party was instrumental in bringing about a limit on the extent of the mortgage. This limit, we believe, is realistic and those with ordinary-priced houses have been helped. Although we do not make changes to take account of inflation, these are matters that are obviously kept under review.