§ Mr. Roperasked the Chancellor of the Exchequer (1) what would be the additional revenue in the current year of disallowing income tax relief on all interest payments except for the first £1,000 of interest paid for house purchase;
(2) what would be the additional revenue in the current year of disallowing income tax relief on all interest payments except for the first £1,200 of interest paid for house purchase;
(3) what would be the additional revenue in the current year of disallowing income tax relief on all interest payments except for the first £1,500 of interest paid for house purchase.
§ Mr. NottThe information necessary for a precise answer to these Questions is not available, and the best estimate I can give is £40 million-£50 million. Estimates including the restriction of relief on interest paid for house purchase to £1,200 or £1,500 would fall within the same range.
§ Mr. Meacherasked the Chancellor of the Exchequer what was the total tax relief on bank loan interest granted in 1972–73; what percentage accrued to those with incomes respectively above and below £5,000 a year, and what is estimated to be the likely total of tax relief on these grounds during the current financial year.
§ Mr. NottThe information required to answer this Question precisely is not available but the estimated figures of tax relief on bank loan interest granted in 1972–73 is £15 million-£20 million. It is not possible to say how much of this accrued to those with incomes above and below £5,000 a year. The estimated tax716W relief on bank loan interest for 1973–74 is £30 million-£40 million but this estimate is also subject to a considerable margin of error.