Mortgage Interest Relief

HC Deb 25 July 1986 vol 102 cc673-4W

Mr. Lawler

asked the Chancellor of the Exchequer what would be the estimated extra revenue from restricting mortgage tax relief to the basic rate and the effect on annual revenue of restricting mortgage tax relief to the basic rate and abolishing the £30,000 limit.

Mr. Norman Lamont

Assuming no consequential changes on the distribution of mortgages outstanding, the direct revenue yield in a full year at 1986–87 levels is £320 million for restricting relief to the basic rate, or £160 million if the £30,000 mortgage interest relief limit were abolished at the same time.

Mr. Raynsford

asked the Chancellor of the Exchequer if he will estimate the additional annual cost in revenue forgone of increasing the maximum limit on mortgage interest tax relief from £30,000 to (a) £35,000 and (b) £40,000.

Mr. Norman Lamont

I regret that it has not been possible to provide an answer before the summer recess. I shall write to the hon. Member and place a copy of the letter in the Library.