§ Mr. Rossiasked the Secretary of State for the Environment what was the cost in public expenditure of mortgage tax relief given to the purchaser of the average new house in 1978, or the most recent year for which figures are available, assuming he paid tax at the then prevailing standard rate.
§ Mr. ShoreMortgage tax relief reduces revenue from income tax, but does not count as public expenditure. It is estimated that a mortgagor paying tax at the basic rate and who took out a building society annuity mortgage of average size for a new house on 6 April 1978 would obtain approximately £370 in tax relief on mortgage interest during the current tax year. This assumes that the society followed changes in mortgage rates recommended by the Building Societies Association.
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