§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is his latest estimate of the cost of tax relief on mortgage, life assurance and bank loan interest, and on contributions to superannuation and retirement pensions and medical insurance.
§ Mr. Robert SheldonThe latest estimate for 1977–78 of the cost of income 845W tax relief in respect of mortgage interest, including that on loans from insurance companies and banks is about £1,070 million. This takes account of the recent reduction in the rates charged by building societies, but assumes that there is no further change in the year.
I regret that there is at present insufficient information on which to base an up-to-date estimate of the cost of tax relief on contributions to occupational pension schemes, but the estimated cost of retirement annuity relief for 1977–78 is about £70 million.
The cost of medical insurance premiums is not deductible for tax purposes by an individual.