§ Mr. Rookerasked the Chancellor of the Exchequer what is the annual tax relief on mortgage interest for a married man with a £25,000 repayment mortgage paying income tax at (a) the standard rate and (b) at each of the higher rate bands.
§ Mr. Ridley[pursuant to his reply, 8 March 1982, c. 305]: At an interest rate of 15 per cent. throughout the income tax year relief would be due on £3,750. The value of the relief in 1981–82 is shown below. The marginal rate of income tax shown is the rate applicable after deduction of all reliefs and allowances due.
Marginal rate of tax Value of mortgage interest relief per cent £ 30 1,125.00 40 *1,587.50 45 †1,700.00 50 1,87500 55 2,062.50 60 2,250.00 * Assuming £2,000 at 40 per cent., the remainder at 45 per cent. † Assuming £3,500 at 45 per cent., the remainder at 50 per cent.