§ Mr. Yeoasked the Chancellor of the Exchequer what is the total cost of mortgage interest tax relief; and how much of this is in respect of taxpayers who are taxed at higher than the basic rate.
§ Mr. MooreThe total cost of mortgage interest relief is estimated to be about £3 billion at 1984–85 levels of mortgage lending and interest rates. About £410 million of this is in respect of higher rate taxpayers. The cost of relief given in excess of the basic rate is some £160 million.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will compare the cost of mortgage interest relief for 1982–83 with 1983–84.
§ Mr. MooreThe costs of mortgage interest relief in 1982–83 and 1983–84 are estimated to be £2,150 million and £2,750 million, respectively. The 1982–83 figure excludes £306 million given under the option mortgage scheme which was subsumed under the arrangements for giving mortgage interest relief at source from 1 April 1983. The estimate for 1983–84 excludes £65 million provision on class XIII Vote 7 for mortgage interest relief at source given to non-taxpayers.