Mortgage Interest and Life Assurance Premiums (Hansard, 11 March 1980)

§ Mr. Field
asked the Chancellor of the Exchequer if he will detail the latest information on mortgage interest tax relief and life insurance premiums, both as total sums and the average annual payment of those earnings (a) under £2,500, (b) £2,500-

Range of total income Cost of mortgage interest relief Number of taxpayers affected^* Average relief per mortgagor

£ £m. '000 £

Under 2,500 … … … 5 100 80

2,500–5,000 … … … 170 1,000 170

5,000–7,500 … … … 410 1,900 210

7,500–10,000 … … … 360 1,400 260

10,000–12,500 … … … 185 550 330

12,500–15,000 … … … 100 200 440

15,000–17,500 … … … 60 100 610

17,500–20,000 … … … 40 50 710

Over 20,000 … … … 120 100 1,240

Total … … … 1,450 5,400 270

^* Counting married couples as one.

§ Mr. Field
asked the Chancellor of the Exchequer if he will update the information on mortgage interest tax relief given to the hon. Member for Stockport, North (Mr. Bennett) Official Report, 7 August 1975, columns 333–4.

§ Mr. Peter Rees
The estimated cost of mortgage interest relief at 1979–80 income levels is about £1,450 million. Estimates of the distribution of this cost are not available by reference to ranges of earnings but are as follows by reference to ranges of total income:

Range of total income Cost of mortgage interest relief Number of taxpayers obtaining relief^*

£ £ million '000

Under 3,000 15 200

3,000–4,000 50 300

4,000–10,000 880 3,900

Over 10,000 505 1,000

1,450 5,400

^* Counting married couples as one.

544W
£5,000, (c) £5,000–£7,500, (d) £7,500–£10,000, (e) £10,000–£12,500, (f) £12,500–£15,000, (g) £15,000–£17,500, (h) £17,500–£20,000 and (i) £20,000 plus and the proportion gained by each prime group together with the number of taxpayers affected.

§ Mr. Peter Rees
The estimated cost of mortgage interest relief and of life insurance relief at 1979–80 income levels is £1,450 million and £430 million respectively. Estimates of the distribution of the cost of mortgage interest relief by ranges of total income are given below. Life assurance relief for 1979–80 is obtained by deduction on payment of the premium by the individual and a distribution is not available by either earnings or total income ranges.

Range of total income	Cost of mortgage interest relief	Number of taxpayers affected^*	Average relief per mortgagor
£	£m.	'000	£
Under 2,500	…	…	…	5	100	80
2,500–5,000	…	…	…	170	1,000	170
5,000–7,500	…	…	…	410	1,900	210
7,500–10,000	…	…	…	360	1,400	260
10,000–12,500	…	…	…	185	550	330
12,500–15,000	…	…	…	100	200	440
15,000–17,500	…	…	…	60	100	610
17,500–20,000	…	…	…	40	50	710
Over 20,000	…	…	…	120	100	1,240
Total	…	…	…	1,450	5,400	270
^* Counting married couples as one.

Range of total income	Cost of mortgage interest relief	Number of taxpayers obtaining relief^*
£	£ million	'000
Under 3,000	15	200
3,000–4,000	50	300
4,000–10,000	880	3,900
Over 10,000	505	1,000
	1,450	5,400
^* Counting married couples as one.