Mortgage Interest Relief (Hansard, 14 July 1988)

§ Mr. Cousins
To ask the Chancellor of the Exchequer what was the cost in revenue forgone of(a) mortgage interest relief, (b) superannuation contributions and (c)retirement annuity premiums, for each year since 1980; and if he will estimate for each year the number and percentage of owner occupiers who were in receipt of mortgage interest relief.

§ Mr. Norman Lamont
The information is as follows. For 1983–84 onwards the figures for mortgage interest relief include the cost of relief given to non-taxpayers.
of tax units in each income band, and the percentage of tax units within each income band who receive the benefits of the relief; and if he will provide comparable figures for both income band and region of residence in 1985–86.

§ Mr. Norman Lamont
Available information is given in the table. Data for 1987–88 and provisional estimates are based on projections from the 1985–86 survey of personal incomes. Due to the small sample size it has been necessary to amalgamate certain income ranges.
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Range of total income Number of tax units¹ with retirement annuity relief Average value of relief Total cost of relief Percentage of total cost Number of tax units¹ paying tax Percentage of tax units Percentage of tax units receiving relief

(thousands) (£) (£ million) (per cent.) (thousands) (per cent.) (per cent.)

£20,000 to £30,000 160 370 60 13 1,800 9 9

Over £30,000 130 2,030 270 59 750 4 17

TOTAL 1,160 400 460 100 20,600 100 6

¹ Single persons and married couples.

Analysis by region¹ 1985–86

Percentages

Tax units² with retirement annuity relief Tax units² paying tax

Northern 5 6

Yorkshire and Humberside 10 8

North West 11 11

East Midlands 7 7

West Midlands 8 9

East Anglia 5 3

South East 31 33

South West 11 8

England 88 85

Wales 4 4

Scotland 7 9

Northern Ireland 1 2

United Kingdom 100 100

¹ Members of the Forces and Merchant Navy have not been allocated to regions or countries, but together with a small number of civil servants serving overseas, have been included in the figures for England.

² Single persons and married couples.

Average gain/loss (—)³ per tax unit² (£ per annum)

Point of income distribution in 1988–89¹ 1979–80 1980–81 1981–82 1982–83 1983–84 1984–85 1985–86 1986–87 1987–88 1988–89

Top 1 per cent. 11,230 10,730 9,260 9,420 10,240 12,820 13,000 13,120 13,350 22,680

Top 2 to 5 per cent. 1,760 1,520 810 890 1,290 1,660 1,790 1,980 2,360 3,350

Top 6 to 10 per cent. 800 660 240 300 540 720 810 990 1,330 1,770

Top 11 to 20 per cent. 490 390 170 200 330 440 510 640 910 1,220

Top 21 to 30 per cent. 360 270 90 110 220 310 380 480 680 910

Top 31 to 40 per cent. 290 210 60 70 160 240 300 380 540 740

Top 41 to 50 per cent. 250 180 30 50 130 200 260 320 460 630

Bottom 50 per cent. 120 70 -50 -40 30 80 120 150 210 290

All 410 330 140 160 270 370 430 500 630 910

¹ Based on 20,900,000 single people and married couples expected to pay tax in 1988–89 and excluding 1,100,000 who would pay tax under the revalorised 1978–79 regime.

² All information is in terms of tax units, i.e. married couples are counted as one and their incomes combined.

³ Average gains are calculated by reference to the estimated number who would be liable to pay tax under the indexed 1978–79 regime.

Range of total income	Number of tax units¹ with retirement annuity relief	Average value of relief	Total cost of relief	Percentage of total cost	Number of tax units¹ paying tax	Percentage of tax units	Percentage of tax units receiving relief
	(thousands)	(£)	(£ million)	(per cent.)	(thousands)	(per cent.)	(per cent.)
£20,000 to £30,000	160	370	60	13	1,800	9	9
Over £30,000	130	2,030	270	59	750	4	17
TOTAL	1,160	400	460	100	20,600	100	6
¹ Single persons and married couples.

Analysis by region¹ 1985–86
Percentages
	Tax units² with retirement annuity relief	Tax units² paying tax
Northern	5	6
Yorkshire and Humberside	10	8
North West	11	11
East Midlands	7	7
West Midlands	8	9
East Anglia	5	3
South East	31	33
South West	11	8
England	88	85
Wales	4	4
Scotland	7	9
Northern Ireland	1	2
United Kingdom	100	100
¹ Members of the Forces and Merchant Navy have not been allocated to regions or countries, but together with a small number of civil servants serving overseas, have been included in the figures for England.
² Single persons and married couples.

Average gain/loss (—)³ per tax unit² (£ per annum)
Point of income distribution in 1988–89¹	1979–80	1980–81	1981–82	1982–83	1983–84	1984–85	1985–86	1986–87	1987–88	1988–89
Top 1 per cent.	11,230	10,730	9,260	9,420	10,240	12,820	13,000	13,120	13,350	22,680
Top 2 to 5 per cent.	1,760	1,520	810	890	1,290	1,660	1,790	1,980	2,360	3,350
Top 6 to 10 per cent.	800	660	240	300	540	720	810	990	1,330	1,770
Top 11 to 20 per cent.	490	390	170	200	330	440	510	640	910	1,220
Top 21 to 30 per cent.	360	270	90	110	220	310	380	480	680	910
Top 31 to 40 per cent.	290	210	60	70	160	240	300	380	540	740
Top 41 to 50 per cent.	250	180	30	50	130	200	260	320	460	630
Bottom 50 per cent.	120	70	-50	-40	30	80	120	150	210	290
All	410	330	140	160	270	370	430	500	630	910
¹ Based on 20,900,000 single people and married couples expected to pay tax in 1988–89 and excluding 1,100,000 who would pay tax under the revalorised 1978–79 regime.
² All information is in terms of tax units, i.e. married couples are counted as one and their incomes combined.
³ Average gains are calculated by reference to the estimated number who would be liable to pay tax under the indexed 1978–79 regime.