§ Mr. Denzil Daviesasked the Chancellor of the Exchequer (1) how much income tax, assuming a 25 year building society mortgage of £10,000 at 11¾ per cent. interest, would have been paid in respect of the year 1978–79 by a married couple with a total gross income, all from employment, of £5,000; and what will be the corresponding figure for 1979–80;
(2) how much income tax, assuming a 25 year building society mortgage of £10,000 at 12¾ per cent. interest, would have been paid for the year 1978–79 by 173W a married couple with a total gross income, all from employment, of £5,000; and what will be the corresponding figure for 1979–80.
§ Mr. Peter Rees, pursuant to his reply [Official Report, 22 June 1979], gave the following answer:
When the mortgage interest rate is 11¾ per cent. the tax would be £695.70 in 1978–79 and £565.50 in 1979–80 and when the interest rate is 12¾ per cent. the tax would be £662.70 in 1978–79 and £535.50 in 1979–80.
It has been assumed that the mortgage is in its first year in each case.