§ Dr. McDonald
asked the Chancellor of the Exchequer if he will publish a table showing the estimated cost of providing mortgage interest tax relief in 1985–86 and 1986–87, at 1985–86 prices, showing separately the estimated cost of mortgages previously under the option mortgage scheme.
§ Mr. Moore
[pursuant to his reply, 31 January 1986, c. 647]: The total cost of mortgage interest relief is estimated to be about £4,750 million in 1985–86. It is not possible to distinguish the cost of relief for those mortgages which were previously under the option mortgage scheme. It would be premature to provide an estimate for 1986–87, since the cost will depend on the amounts of mortgage lending and interest rates as well as on the 1986–87 income tax rates and bands.