§ Mr. David Nicholson
To ask the Chancellor of the Exchequer if he will estimate at 1989–90 income levels the cost to the Exchequer of(a) raising the ceiling on mortgage interest relief from £30,000 to £50,000 and (b) raising the ceiling for exemption from stamp duty on land and buildings from £30,000 to £60,000.
§ Mr. Lilley
(a) The direct revenue cost at 1989–90 income levels of raising the ceiling on mortgage interest relief from £30,000 to £50,000 is estimated to be about £900 million. This estimate makes no allowance for any consequential change to the distribution of outstanding mortgages. It is based on a projection of the 1987–88 survey of personal incomes, and is therefore provisional.
(b) An increase in the stamp duty threshold for land and buildings from £30,000 to £60,000 is estimated to cost about £210 million at forecast 1989–90 levels.