§ Mr. Bottomleyasked the Chancellor of the Exchequer what is the value of mortgage interest tax relief to a taxpayer with a mortgage of (a)£10,000, (b)£20,000 and (c)£30,000 at (i) 30 per cent., (ii) 50 per cent. and (iii) the maximum rate of tax.
§ Mr. MooreAssuming the mortgage interest rate remains at 11¼ per cent. for the remainder of 1983–84, the amounts of relief would be:
Marginal rate of tax (a) (b) (c) £ £ £ 30 per cent. 328 656 984 50 per cent. 547 1,094 1,641 Maximum rate* 820 1,641 2,461 * Including investment income surcharge.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the seepage of mortgage interest relief into other forms of investment.
§ Mr. MooreThere is no evidence that mortgage interest relief is being given on any significant scale for loans which do not meet the statutory requirements for relief. Checks are made and where relief is found not to be due, it is withdrawn. The Government are aware of Bank of England estimates as to how far increases in aggregate mortgage borrowing may indirectly help to support either additional consumer spending or other forms of investment. These estimates do not however imply that there is any significant misuse of mortgage interest relief.