§ Miss Richardsonasked the Chancellor of the Exchequer what would be the saving if mortgage tax relief were allowed at the same rate as life insurance premium tax reliefs; and what would be the effect on the average relief received by mortgagors with earnings at average earnings and at half, three-quarters, one and a half, twice, three, four and five times average earnings.
§ Mr. RidleyThe saving in a full year at 1982–83 income levels is estimated at £1,170 million. This figure does not include the effect of a corresponding change in the option mortgage scheme. The average effect of mortgage interest relief in reducing the income tax payable can only be calculated for all mortgagors with total income lying within the ranges shown, within which fall the multiples of average earnings specified.
Multiple of average earnings* Corresponding range of total income Average increase in income tax per mortgagor if relief allowed at 15 per cent, only £ £ ½ 4,000–4,500 110 ¾ 6,000–6,500 150 1 8,000–8,500 160 1½ 12,000–13,000 180 2 16,000–17,000 240 3 20,000–30,000 550 4 30,000–40,000 830 5 40,000–50,000 1,040 * The average earnings of full-time adult male workers in all occupations in 1982–83 are broadly estimated to be some £160 per week.