§ Mr. Hunterasked the Chancellor of the Exchequer what would be the increase in tax collected if mortgage interest relief was restricted to the basic rate of income tax only.
§ Mr. Norman LamontThe direct revenue yield in a full year, at 1987–88 levels, from restricting relief to the basic rate is estimated at £340 million. This makes no allowance for the effect of any consequential changes to the distribution of outstanding mortgages.
§ Mr. Speedasked the Chancellor of the Exchequer how many representations he has received in the past 12 months about the more favourable tax treatment of mortgages for unmarried people living together rather than that given to married couples; and what reply he has sent.
§ Mr. Norman LamontMy right hon. Friend the Chancellor of the Exchequer has received about 200 representations on the subject in the past 12 months. Replies have referred to last year's Green Paper on the reform of personal taxation, which suggested that one possibility would be to apply mortgage interest relief to the residence so that two or more people borrowing to buy a house would share the relief limit between them, whether they were married or unmarried.