HC Deb 13 December 1979 vol 975 cc729-30W
Mr. Joel Barnett

asked the Chancellor of the Exchequer, pursuant to the Inland Revenue press release of 30 November on building society interest relief for pay as-you-earn, how soon after 5 April 1980 he expects to be able to make the lump sum payment of relief due for 1979–80.

Sir Geoffrey Howe

Any relief due for 1979–80 by reason of the increased rate of building society interest will be given by repayment as soon as possible after the societies report the actual interest paid.

Mr. Joel Barnett

asked the Chancellor of the Exchequer, pursuant to the Inland Revenue press release of 30 November, if the new code numbers for 1980–81 now being prepared will take account of the higher mortgage interest rates; and what rates he has told the Inland Revenue to assume for the whole of that year.

Sir Geoffrey Howe

It is not possible to predict the course of mortgage interest rates over the coming financial year. PAYE codings for 1980–81 will, therefore, be based upon an interest rate of 15 per cent., the rate most recently announced by the Building Societies Association.

Mr. Joel Barnett

asked the Chancellor of the Exchequer, pursuant to the Inland Revenue press release of 30 November, how hardship will be defined for the purposes of adjusting the code number for 1979–80 as a matter of urgency.

Sir Geoffrey Howe

The right hon. Gentleman will know from his own experience of these matters that it is not practicable to lay down a general definition of hardship for this purpose.

Mr. Meacher

asked the Chancellor of the Exchequer, for a married man with two children, what is the increase in mortgage interest tax relief he receives with the rise in interest rate to 15 per cent. if his gross salary is £3,000, £5,000, £8,000, £12,000 and £20,000, assuming in each case a mortgage loan of three times the gross salary, and assuming in the case of the £20,000 salary man firstly that he is subject to the investment income surcharge of 15 per cent., and secondly that he is not.

Mr. Peter Rees

I shall let the hon. Member have a reply as soon as possible.