§ Mr. George Cunninghamasked the Chancellor of the Exchequer what is his estimate of the gain to the revenue of abolishing tax relief as from April, 1971, on interest paid on loans used to buy houses; and of the loss to the revenue of placing all such loans on option mortgage terms.
§ Mr. Patrick JenkinAn estimate for 1971–72 is not available. The yield for 1970–71 is provisionally estimated at about £300 million. If all loans secured on houses were converted to option mortgages there would be a considerable gain to the Exchequer because the extra tax yield would outweigh the subsidy.