§ Mr. Redwoodasked the Chancellor of the Exchequer what would be the net revenue cost to the Exchequer if both husband and wife were to enjoy mortgage interest relief on £30,000 of mortgage.
§ Mr. Norman LamontThe direct revenue cost in a full year, at 1987–88 levels, of allowing both a husband and wife to claim relief for mortgage interest paid on a loan of upt to £30,000 each is estimated to be about £350 million. The cost of the increase in the mortgage interest relief ceiling for married couples at 1988–89 levels would probably be significantly higher than the estimate above, both because the number of new loans at £30,000 has been increasing recently and because an increase in the ceiling for married couples might stimulate additional borrowing.
§ Mr. Redwoodasked the Chancellor of the Exchequer what extra revenue would result to the Exchequer if mortgage interest relief were limited to the standard rate of tax only.
§ Mr. LamontThe direct revenue yield in a full year, at 1987–88 levels, from restricting relief to the basic rate is estimated at £340 million. This makes no allowance for the effect of any consequential changes to the distribution of outstanding mortgages.