§ Mr. Raynsfordasked the Chancellor of the Exchequer how many mortgagors there are at present in each rate hand of income tax; and how many there would be in the current year in each rate band of income tax if tax relief on owner-occupier's mortgage interest and interest or other loans for house purchase and improvement were withdrawn.
§ Mr. Norman Lamont[pursuant to his reply, 10 June 1986, c. 169]: The latest estimates in respect of 1986–87 are as follows:
Marginal tax rate Current mortgagors Mortgagors if relief were withdrawn percentage (thousands) (thousands) 0 500 500 29 7,100 6,900 40 240 300 45 160 240 50 100 140 55 40 50 60 60 70
§ Mr. Raynsfordasked the Chancellor of the Exchequer what would be the increase in revenue at outturn prices which would accrue in the current year if tax relief on owner-occupiers' mortgage interest and interest on other loans for house purchase and improvement were withdrawn; and how much of this calculated revenue would be raised from those who would then be paying tax at the higher rates.
§ Mr. Norman Lamont[pursuant to his reply, 10 June 1986, c. 169]: The direct revenue cost of mortgage interest relief for 1986–87 is estimated at about £4¾ billion. About £1 billion of this benefits the 800,000 mortgagors who either are or would become higher rate taxpayers if the relief were withdrawn.