§ Mr. Banksasked the Chancellor of the Exchequer what further consideration he has given to allowing mortgage interest as relief on income tax for Service men who let or leave their homes empty when posted away; and if he will make a statement.
NET INCOMES IN £ PER WEEK Average earnings ¾ average earnings 1½ times average earnings Twice average earnings August 1970— Married couple—both earning … 25.79 20.89 35.74 45.83 Married couple with 1 child … 23.96 18.91 34.49 45.01 Married couple with 3 children … 26.41 21.36 36.93 47.46 August 1976— Married couple—both earning … 58.46 46.91 81.57 103.15 Married couple with 1 child … 54.12 42.92 77.56 99.77 Married couple with 3 children … 59.40 48.21 82.85 105.71 None of these taxpayers is eligible for FIS payments.
The figures for average earnings in August 1970 and August 1976 are those used in the reply given to the hon. Member on 29th October 1976—[Vol. 918, c. 389–392]. It has been assumed that the children are not over 11 years of age, that the earner was "not contracted out" of the graduated pension scheme in 1970, and that the earning wife had elected to pay national insurance contributions at the reduced rate in 1970 and 1976.
552W
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 10th December 1976], gave the following information:
On 14th July 1976, during the debates on the Finance Bill, I announced a relaxation in the rules for tax relief on mortgage interest to meet the case of persons, including Service men, required by their employment to leave their homes for periods of up to four years. The detailed application of the new rules has now been discussed between the Inland Revenue and other interested Departments.