§ Mr. Sillarsasked the Chancellor of the Exchequer (1) what is the income tax liability of a married man with two children aged under 11 years earning £1,560 a year, and the income tax liability of similarly circumstanced men who also have a mortgage of £1,000, £2,000. £3,000 and £4,000 respectively, all paying a rate of 8 per cent. interest;
(2) what is the current code number under Pay As You Earn for a married man with two children earning £1,560 a year, and the code number for similarly circumstanced men making repayments on a mortgage of £2,000, £3,000 and £4.000, respectively, all paying a rate of 8 per cent. interest.
§ Mr. Patrick JenkinI assume the hon. Member means a mortgage paid off steadily in which case the figures will depend upon the total period of the mortgage and when it was taken out. For such a 20-year mortgage, the following table gives figures for its first and last years.
MARRIED MAN WITH TWO YOUNG CHILDREN AND NO INCOME EXCEPT EARNINGS OF £1,560 PER ANNUM AND THE FAMILY ALLOWANCE OF £46.80 PER ANNUM FOR 1971–72. Amount of mortgage over period of 20 years at 8 per cent per annum First year of mortgage Last year of mortgage Code number Total tax Code number Total tax £ £ £ Nil 616 199.80 616 199.80 1,000 641 173.90 619 197.40 2,000 656 151.10 622 194.95 3,000 672 126.10 625 192.70 4,000 681 102.60 628 190.30