Mortgage Interest Tax Relief

HC Deb 04 July 1988 vol 136 cc470-1W

Mr. Ralph Howell

To ask the Chancellor of the Exchequer what savings would be made if all mortgage interest relief was abolished; how many tax units receive mortgage interest tax relief; and what is the average cost per unit.

Mr. Norman Lamont

The cost of mortgage interest relief in 1988–89 is estimated to be about £4,250 million. About 8.6 million tax units benefit from this relief and the average value of the relief is £490.

The Exchequer savings which would arise from the abolition of all mortgage interest relief would depend on the behavioural response of mortgagors.