§ Mr. DewarTo ask the Chancellor of the Exchequer in what circumstances insurance policies for mortgage interest protection against sickness and unemployment are liable to the insurance premium tax; and what is his estimate of the effect on tax receipts of plans to restrict income support help with mortgage interest payments from October 1996.
§ Mr. Heathcoat-AmoryInsurance policies for mortgage interest protection against sickness and unemployment are liable to insurance premium tax because they are a type of general insurance, almost all of which is subject to the tax. No specific estimate has been made of the effect on tax receipts of any increase in the use of such insurance—in the context of changes to the income support arrangements relating to mortgage interest payments—but any such effect is likely to be negligible.