HC Deb 31 March 1980 vol 982 cc77-8W
Mr. Field

asked the Chancellor of the Exchequer if he will update the information given on mortgages, tax relief, to the hon. Member for Merton, Official Report, 20 October 1976, column 467.

Mr. Peter Rees

The information is shown in the table below.

The figures of the cost of mortgage relief are based on the total interest paid on mortgages of different types and the calculations for years for which this information is directly available do not require estimates of average interest rates. For more recent years projections have to be made taking account of movements in building societies' interest rates.

Cost of tax relief on all mortgage loans £ million Average interest rates received by building societies on mortgage Cost of tax advances nearest calendar year percentage
1975–76 865 11.1
1976–77 1,090 11.1
1977–78 1,040 11.1
1978–79 1,110 9.6
1979–80 1,450 12.0

Mr. Austin Mitchell

asked the Chancellor of the Exchequer, further to his reply dated 11 March concerning the amount of mortgage interest qualifying for tax relief, whether he will circulate in the Official Report a table showing (a) the average amount of relief per claimant in each income band and (b) the average gain or loss to each taxpaying unit if the relief was replaced by (i) a reduction in the standard rate of tax which would then be possible or (ii) raising the threshold of the basic rate band.

Mr. Peter Rees

I would refer the hon. Member to my reply on 24 March.—[Vol. 981, c.422.]