Mortgage Interest Relief (Hansard, 23 May 1977)

§ Mr. Frank Allaun
asked the Chancellor of the Exchequer how much reduction of mortgage interest by 1 per cent. is likely to save the Government in tax relief in the current financial year.
346W

§ Mr. Denzil Davies
The National Savings Bank operates ordinary and investment accounts and the surplus/deficit in each of the last five years of published accounts is as follows:

§ Mr. Robert Sheldon
I will let my hon. Friend have a reply as soon as possible.

§ Mr. Peter Bottomley
asked the Chancellor of the Exchequer what annual savings would accrue to the Treasury if tax relief on building society mortgages were allowed at the standard rate only for mortgages valued at (a) up to £5,000, and (b) for each additional £1,000.

§ Mr. Freeson
I have been asked to reply.
I regret that the information available is not sufficiently accurate to provide estimates ranged by £1,000 bands of building society mortgages. On a more limited basis, estimates for 1976–77 are as follows:

Building society mortgages^* Tax relief in excess of relief on basic rate £ million

above £8,000 45

above £10,000 30

above £15,000 15

^*The estimates shown indicate orders of magnitude only. Where the amount outstanding on the mortgage exceeds the figure shown, tax relief has been allowed at the full rate up to that limit.

§ Mr. Peter Bottomley
asked the Chancellor of the Exchequer if he will publish in the Official Report the value of mortgage tax relief expressed as a percentage of (a) council house subsidies less rent rebates and allowances, and (b) council house subsidies including the cost of the rent rebate and allowance scheme for each year since 1970.

§ Mr. Freeson
I have been asked to reply.
347W
Estimates for England are:
Tax relief on mortgage interest payments plus option mortgage subsidy, expressed as a percentags of total subsidy paid in respect of HRA dwellings (a) excluding and (b) including rent rebates^*.

(a) (b)

1971/72 176 176

1972/73 175 134

1973/74 200 128

1974/75 122 92

1975/76 104 83

1976/77 123 96

^* Rent allowances have been excluded from public sector subsidies as they are paid to private sector tenants; rent rebate subsidy was introduced in 1972/73.

Building society mortgages^*	Tax relief in excess of relief on basic rate £ million
above £8,000	45
above £10,000	30
above £15,000	15
^*The estimates shown indicate orders of magnitude only. Where the amount outstanding on the mortgage exceeds the figure shown, tax relief has been allowed at the full rate up to that limit.

	(a)	(b)
1971/72	176	176
1972/73	175	134
1973/74	200	128
1974/75	122	92
1975/76	104	83
1976/77	123	96
^* Rent allowances have been excluded from public sector subsidies as they are paid to private sector tenants; rent rebate subsidy was introduced in 1972/73.