HC Deb 10 March 1978 vol 945 cc819-20W
Mr. Wm. Ross

asked the Chancellor of the Exchequer what tax relief would

1. MAN EARNING AVERAGE MANUAL WAGE FOR NORTHERN IRELAND
Value of income tax relief
Year of commencement of mortgage Cost of House (a) First year (b) Average per annum (c) Total
£ £ £ £
1972–73 … … … … … 5,000 98.70 82.00 1,640
10,000 98.70 82.00 1,640
1977–78 … … … … … 10,000 272.50 154.00 3,079
20,000 286.10 161.00 3,232

2. MAN EARNING AVERAGE MANUAL WAGE FOR GREAT BRITAIN
Value of income tax relief
Year of commencement of mortgage Cost of House (a) First year (b) Average per annum (c) Total
£ £ £ £
1972–73 … ... … … … 5,000 100.00 83.00 1,660
10,000 115.10 95.60 1,912
1977–78 … … … … … 10,000 272.50 154.00 3,079
20,000 316.70 178.90 3,578

The maximum allowable mortgage depends upon the status of the purchaser and the building society's valuation of the property, but these calculations have been based on the assumption of a maximum mortgage of 80 per cent. of the cost of the property, repayable over 20 years and subject to the advance not exceeding two and a half times the mortgagor's annual earnings.

The figures assume that the present mortgage interest rate and basic rate of income tax remain unchanged for the remainder of the duration of each mortgage.

Average earnings for 1972–73 are taken to be the average of the New Earnings Survey estimates for April 1972 and April 1973 relating to full-time male manual accrue per annum and in total to a person with a maximum mortgage allowable at the present date and five years ago over the normal life of the mortgage on a dwelling costing £5,000 and £10,000, five years ago and now costing £10,000 and £20,000, if the owner were earning the average industrial wage for Great Britain, and for Northern Ireland, at the appropriate time and had a wife and two children and a wife and four children, respectively.

Mr. Robert Sheldon,

pursuant to his reply [Official Report, 7th March 1978; Vol. 945, c. 616], gave the following information:

The figures for both sizes of family are as follows:

workers in Northern Ireland and Great Britain respectively. For 1977–78 the April 1977 New Earnings Survey estimates have been used.

Forward to