HC Deb 16 January 1984 vol 52 cc6-7W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer if he will estimate for the latest available period the average loss of revenue per mortgagor claiming tax relief on mortgage interest.

Mr. Moore

The average cost of mortgage interest tax relief per mortgage in 1983–84 is estimated to be about £400.

Mr. Bottomley

asked the Chancellor of the Exchequer what evidence he has as to the average relative sizes and durations of the mortgages of standard rate taxpayers and higher rate taxpayers, respectively.

Mr. Moore

A projection from the latest available survey of personal incomes indicates that the average outstanding mortgage, for a basic rate taxpayer with a mortgage, is approximately £11,000 in 1983–84. This estimate incorporates an adjustment for former option mortgagors now subsumed under the arrangements for giving mortgage interest tax relief at source. For higher rate taxpayers, the average is about £16,000. I regret that no information is available centrally on the relative duration of mortgages for basic rate and higher rate taxpayers.

Mr. Rooker

asked the Chancellor of the Exchequer how mortgage interest relief is calculated when the amount of mortgage includes the fixtures, fittings and furnishings of a home.

Mr. Moore

I shall let the hon. Member have a reply as soon as possible.