§ Mr. Peter Bottomleyasked the Chancellor of the Exchequer if he will estimate the increased tax revenue from reduced mortgage interest tax relief if the mortgage interest rate were to be reduced by 5 per cent.
§ Mr. Peter ReesOn the assumption that a reduction in the mortgage interest rate of 5 per cent. would be accompanied by a corresponding reduction in the rate of interest paid to building society depositors, the net increase in the yield of income tax and corporation tax would probably be under £100 million.
§ Mr. Peter Bottomleyasked the Chancellor of the Exchequer what he estimates to be the cost of increasing the £25,000 mortgage interest tax relief to £30,000, £40,000 and £50,000, respectively.
§ Mr. Peter ReesI regret that the information on which to base a firm estimate is not available. But disregarding any new lending generated by the raising of the limit, the cost of an increase to £50,000 would probably not exceed 365W £25 million in a full year at 1980–81 income levels. The smaller the increase in the limit the less the cost would be, but it is not possible to estimate the figures more precisely.