§ Mr. Deakinsasked the Chancellor of the Exchequer what savings he estimates would be made in the next tax year if income tax relief were no longer granted on new mortgages, extrapolating from previous years' statistics.
§ Mr. Peter ReesIt is not possible to give an estimate of the amount of tax relief on interest on new mortgages in 1981–82. The amount would depend on the level of incomes, allowances and reliefs, mortgage interest rates and the level of new mortgages; and the withdrawal of tax relief from these would have substantial effects on the housing market and the economy in general. However, as a guide new advances taken out in 1980–81 are estimated to account for around 10 per cent. of the total tax relief on qualifying mortgages of £1,960 million for 1980–81. This percentage would tend to be reduced if tax relief on new mortgages were withdrawn.