§ Mr. Fieldasked the Chancellor of the Exchequer if he will update the information on the loss of revenue in granting tax relief on life assurance premiums given to the hon. Member for Stockport, North, (Mr. Bennett), Official Report, 31 July 1975, c. 333–34.
§ Mr. Peter ReesCosts of tax relief on life assurance premiums by range of income have been published each year since 1973–74 in "Inland Revenue Statistics". These are reproduced in the table below, together with figures for 1977–78 based on the latest income survey available and a provisional forecast for 1978–79.. It is not possible to derive similar information by income range for 1979–80 as the system now provides for a deduction to be made on payment of the premium by an individual and for a payment to be made to the insurance company by the Inland Revenue. The total relief at 1979–80 levels is estimated to cost about £430 million.
over 25 years at the current mortgage interest rate for taxpayers paying tax at each of the income tax rate bands.
569W
§ Mr. Peter ReesFor a mortgage of £25,000 over 25 years at an interest rate of 15 per cent. the value of mortgage interest relief in the first year of the mortgage is as follows:
Value of the Mortgage Interest Relief at a Marginal Rate of Per cent.1980 £ 30 1,125 40 1,325 45 1,650 50 1,875 55 2,062 60 2,250 The values in the following years would fall and in the last years of the mortgage would be small.