HC Deb 18 December 1987 vol 124 cc848-50W
Mr. Matthew Taylor

To ask the Chancellor of the Exchequer what representations he has received seeking an alteration to the rules relating to mortgage interest tax relief; and if he will make a statement.

Mr. Norman Lamont

My right hon. Friend continues to receive a number of representations on mortgage interest relief. The level of relief has to be fixed each year and will be considered in framing the Budget proposals.

Mr. Kirkwood

To ask the Chancellor of the Exchequer if he will publish in theOfficial Report a table showing, by range of income, estimates for 1987–88 of the number of tax units receiving mortgage interest tax relief, the average value per mortgagor and the total cost of the relief.

Mr. Norman Lamont

[holding answer 17 December 1987]: Provisional estimates are given in the table. These are based on projections to 1987–88 of information in the 1984–85 survey of personal incomes and the 1985 family expenditure survey. The estimates include mortgages formerly under the option mortgage scheme which are now subsumed within MIRAS.

Tax Unit1 receiving mortgage interest relief by range of total income 1987–88.
Range of total income £000 Numbers receiving mortgage interest relief2(thousands) Average value of relief to mortgagor (£) Total cost of relief (£ million)
Under 4 650 370 240
4 to 5 100 380 40

Fifty per cent, of average male earnings (£113.65 a week in 1987–88)
Single Married no children Married both working Married two children
£ per week £ per week 1987–88 prices Per cent, of gross earnings £ per week £ per week 1987–88 prices Per cent, of gross earnings £ per week £ per week 1987–88 prices Per cent, of gross earnings £ per week £ per week 1987–88 prices Per cent, of gross earnings
1978–79
Income tax 7.91 15.90 17.0 4.42 8.89 9.5 0.00 0.00 0.0 -1.88 -3.78 -4.1
NIC 3.02 6.07 6.5 3.02 6.07 6.5 3.02 6.07 6.5 3.02 6.07 6.5
Total 10.93 21.98 23.6 7.44 14.96 16.0 3.02 6.07 6.5 1.14 2.29 2.5
1979–80
Income tax 8.95 15.54 16.4 5.20 9.03 9.5 0.00 0.00 0.0 -2.80 -4.86 -51
NIC 3.55 6.16 6.5 3.55 6.16 6.5 3.55 6.16 6.5 3.55 6.16 6.5
Total 12.50 21.70 22.9 8.75 15.19 16.0 3.55 6.16 6.5 0.75 1.30 1.4
1980–81
Income tax 11.78 17.58 17.9 7.33 10.94 11.2 0.00 0.00 0.0 -1.21 -1.81 -1.8
NIC 4.43 6.61 6.7 4.43 6.61 6.7 4.43 6.61 6.7 4.43 6.61 6.7
Total 16.21 24.20 24.7 11.76 17.55 17.9 4.43 6.61 6.7 3.22 4.81 4.9
1981–82
Income tax 13.95 18.68 19.1 9.51 12.73 13.0 1.58 2.12 2.2 -0.35 -0.47 -0.5
NIC 5.65 7.56 7.7 5.65 7.56 7.7 5.65 7.56 7.7 5.65 7.56 7.7
Total 19.60 26.24 26.9 15.16 20.30 20.8 7.23 9.68 9.9 5.30 7.10 7.3
1982–83
Income tax 14.58 18.23 18.5 9.50 11.88 12.1 0.48 0.60 0.6 -1.44 -1.80 -1.8
NIC 6.89 8.62 8.8 6.89 8.62 8.8 6.89 8.62 8.8 6.89 8.62 8.8
Total 21.47 26.85 27.3 16.39 20.49 20.8 7.37 9.22 9.4 5.45 6.81 6.9
1983–84
Income tax 15.35 18.34 18.0 9.53 11.38 1.11 0.00 0.00 0.0 -2.65 -3.17 -3.1
NIC 7.70 9.20 9.0 7.70 9.20 9.0 7.70 9.20 9.0 7.70 9.20 9.0
Total 23.05 27.54 27.0 17.23 20.58 20.2 7.70 9.20 9.0 5.05 6.03 5.9
1984–85

Range of total income £000 Numbers receiving mortgage interest relief2 (thousands) Average value of relief to mortgagor (£) Total cost of relief (£ million)
5 to 6 140 410 50
6 to 7 210 420 80
7 to 8 270 450 120
8 to 9 370 470 170
9 to 10 480 480 230
10 to 12 1,150 540 600
12 to 15 1,600 560 890
15 to 20 1,900 580 1,100
20 to 25 730 580 410
25 to 30 330 810 270
Over 30 470 1,170 550
Total 8,400 570 4,750
1 Single persons and married couples.
2 Including about 500,000 non-taxpayers.