HC Deb 20 July 1981 vol 9 cc40-1W
Mr. Tilley

asked the Chancellor of the Exchequer what the estimates are for the total cost of tax relief on mortgage interest payments at 1981 survey prices for the years 1975–76 to 1981–82, separately, for England, Scotland and Wales.

Mr. Peter Rees

The estimated amounts in a full year are as follows:

Cost of mortgage interest tax relief at 1979–80* prices
£ million
England Scotland Wales
1975–76 1,270 65 45
1976–77 1,385 75 55
1977–78 1,165 60 45
1978–79 1,135 65 45
1979–80 1,300 75 55
1980–81 1,525 90 60
1981–82† 1,285 75 50
* Equivalent to 1980 survey prices (see Cmnd. 8175, section 5, paragraph 31).
† The estimate for 1981–82 is made on the basis of an interest rate of 13 per cent. throughout the year.

Mr. Tilley

asked the Chancellor of the Exchequer what are the estimates for the cost of mortgage tax relief per mortgagor and per owner-occupied dwelling at 1980 survey prices for the years 1975–76 to 1981–82, separately, for England, Scotland and Wales.

Mr. Peter Rees

The available information is as follows:

£ per head at 1979–80 prices*
Mortgage tax relief:
per mortgagor receiving tax relief† per mortgagor‡ per owner-occupied dwelling
1975–76
England .. 240 135
Scotland .. .. 100
Wales .. .. 75
1976–77
England .. 260 145
Scotland .. .. 115
Wales .. .. 95
1977–78
England 240 210 120
Scotland 250 .. 190
Wales 240 .. 75
1978–79
England 230 200 115
Scotland 255 .. 100
Wales 210 .. 75
1979–80
England 265 255 130
Scotland 280 .. 110
Wales 250 .. 85
1980–81
England 310 255 150

Mortgage tax relief:
per mortgagor receiving tax relief† per mortgagor‡ per owner-occupied dwelling
Scotland 340 .. 125
Wales 275 .. 95
1981–82**
England 260 215 125
Scotland 275 .. 105
Wales 230 .. 80
* Equivalent to 1980 survey prices (see Cmnd. 8175, section 5, paragraph 31).
† Calculated by reference to taxpayers in receipt of tax relief on mortgage interest. Estimates for 1975–76 and 1976–77 are not available as the Survey on Personal Incomes, from which the information is drawn, did not enable the numbers of taxpayers paying interest other than to building societies to be accurately estimated.
‡ Calculated by reference to all owner-occupiers with a mortgage—including those receiving tax relief, those receiving option mortgage subsidy, and some not in receipt of either. A reliable basis of estimation for Scotland and Wales taken separately is not available; the estimates for 1981–82 are based on the number of mortgagors at the end of 1980 and hence: are subject to revision.
** The estimate for 1981–82 is made on the basis of an interest rate of 13 per cent, throughout the year.
.. Not available.