HC Deb 08 January 1990 vol 164 cc552-3W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish a table on the same general basis as that provided in his written reply to the hon. Member for Great Grimsby on 29 July 1988,Official Report, columns 728–30, on the cost to the Exchequer of mortgage interest relief for higher-rate taxpayers in a full year at the current basic rate of mortgage interest; and if he will add a forecast for 1990–91 on the same basis, allowing for separate taxation of husbands and wives.

Mr. Lilley

Estimates of excess over basic rate relief on mortgage interest in 1989–90, based on a projection of the 1987–88 survey of personal incomes, are given in the table. Estimates for 1990–91 are not available.

Range of total income (£) Number of tax units (Thousand) Gross amount of interest qualifying for relief (£ million) Cost of excess over basic rate relief (£ million) Average basic rate relief (£) Average excess over basic rate relief (£) Number of non-aged tax units (Thousand)
25,001–30000 265 825 60 780 220 265
30,001–40,000 495 1,585 190 800 380 490
40,001–50,000 185 600 85 810 460 180
Over 50,000 210 695 105 840 500 200
Total 1,175 3,760 440 800 370 1,155
1 Includes about 250,000 tax units who are kept out of higher rate tax by this relief.
2 Less than £2.5 million.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish a table showing by range of income the numbers of single persons and married couples(a) with and (b) without wife's earned income below and above age 65 years in receipt of mortgage interest relief and the average relief per mortgagee in each case in a full year at the current basic

Single people and married couples receiving mortgage interest relief by range of total income 1989–90
Non-aged mortgagors Aged mortgagors
range of total income Number with mortgage interest relief Thousands Average tax cost of relief per mortgagor £ Number with mortgage interest relief Thousands Average tax cost of relief per mortgagor £
Singles
Up to £5,000 240 440 20 280
£5,001 to £10,000 770 610 20 350
£10,001 to £15,000 650 740 10 570
£15,001 to £20,000 400 860 1— 530
£20,001 to £30,000 290 940 1— 410
Over £30,000 110 1,490 1— 1,050
Total 2,450 750 60 410
Married couples with wife earning
Up to £5,000 40 500 10 200
£5,001 to £10,000 210 550 10 500
£10,001 to £15,000 700 620 10 450
£15,001 to £20,000 980 700 10 420
£20,001 to £30,000 1,070 800 1— 260
Over £30,000 640 1,240 10 800
Total 3,660 800 50 480
Married couples with wife not earning
Up to £5,000 120 470 20 390
£5,001 to £10,000 590 610 40 2.50
£10,001 to £15,000 940 650 10 160
£15,001 to £20,000 620 760 10 220
£20,001 to £30,000 490 820 10 320
Over £30,000 210 1,460 10 970
Total 2,970 740 90 330
1 Less than 5,000.

Figures may not add due to rounding.