§ Mr. McCrindleasked the Chancellor of the Exchequer what representations he has received recommending the increase in the ceiling for mortgage tax relief to (a) £35,000 or (b) £40,000; and if he will make a statement.
§ Mr. Norman LamontA number of representations have been received. The ceiling for mortgage interest relief has to be fixed each year and will be considered in framing the budget proposals.
Mr. D. E. Thomas asked the Chancellor of the Exchequer (1) what has been the value of mortgage interest tax relief per private dwelling in Wales for each year from 1978–79 to 1986–87 in outturn terms and at 1986–87 prices;
(2) what has been the value of mortgage interest tax relief per mortgagor in Wales for each year from 1978–79 to 1986–87 in outturn terms and at 1986–87 prices.
§ Mr. Norman Lamont[pursuant to his replies, 22 January 1987, c. 708]: The latest estimates are given in the table below. Estimates for years up to 1982–83 have been derived from the results of the survey of personal incomes. Following the introduction of MIRAS in April 1983, regional information on the cost of mortgage interest relief cannot be extracted from Inland Revenue records and the estimates give for 1983–84 onwards are therefore subject to wide margins of error.
Value of mortgage interest relief in Wales (£) Average value per owner-occupied dwelling Average value per mortgagor receiving relief Year outturn prices 1986–87 prices2 outturn prices 1986–87 prices2 1978–79 65 125 175 335 1979–80 80 130 215 360 1980–81 100 145 290 415 1981–82 115 145 315 410 1982–83 115 135 295 350 1 1983–84 145 165 310 355 1 1984–85 180 200 380 415 1 1985–86 230 235 475 490 1 1986–87 n/a n/a 465 465 1 Including option mortgages which were subsumed in the M1RAS scheme from 1983–84 onwards. 2 Expressed in 1986–87 prices using the retail prices index.