§ Mr. Walter Johnsonasked the Chancellor of the Exchequer if he will list the approximate tax reliefs given to a standard rate income taxpayer who purchases a house through a building society on a 20-year mortgage of, respectively, £20,000 at 8 per cent. interest, at 7½ per cent. and 7 per cent.; £15,000 at 8 per cent., 7½ per cent. and 7 per cent.; £10,000 at 8 per cent., 7½ per cent. and 7 per cent.; £5,000 at 8 per cent., 7½ per cent. and 7 per cent.; and £3,000 at 8 per cent.. 7½ per cent. and 7 per cent.
§ Mr. Patrick JenkinAssuming that there is no change in the standard rate during the period of the mortgage and that the mortgagor has sufficient investment income to cover his interest charges the aggregate tax relief over the period is:
Amount of mortgage Rate of interest Aggregate interest qualifying for relief Tax thereon at standard rate of 38¾ per cent. £ Per cent. £ £ 20,000 8 20,742 8,038 7½ 19,236 7,454 7 17,757 6,881 15,000 8 15,557 6,028 7½ 14,427 5,590 7 13,318 5,161 10,000 8 10,371 4,019 7½ 9,618 3,727 7 8,879 3,441 5,000 8 5,185 2,009 7½ 4,809 1,863 7 4,439 1,720 3,000 8 3,111 1,206 7½ 2,885 1,118 7 2,664 1,032 If the mortgagor pays surtax, the value of the tax relief would be greater. If the interest is paid wholly or partly out of earned income, the relief would be less than the figures.