HC Deb 24 June 1975 vol 894 cc108-9W
Mr. George Cunningham

asked the Chancellor of the Exchequer what tax relief, at basic rate only, would be provided in each of the first 10 years in respect of a house loan of £8,000 assuming an interest rate of 11 per cent. gross and repayment of capital over 25 years, by a formula causing gross interest and capital repayment to be a constant figure each year.

Mr. Robert Sheldon

The figures are as follows:

Year Tax relief at basic rate (£)
1 308
2 305
3 302
4 299
5 295
6 291
7 287
8 282
9 276
10 270
Total 2,915

For the purpose of the calculations it has been assumed that the mortgage commenced on 6th April 1975 and that the basic rate of tax proposed for 1975–76 remains in force throughout.

Mr. Dunnett

asked the Chancellor of the Exchequer if he will now increase the present limit of £13,000 above which loans made by building societies are treated as special advances.

Mr. Dell

An order increasing the limit to £20,000 was laid before Parliament in draft today.

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