HC Deb 30 March 1987 vol 113 cc433-6W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing his estimate of the number of cases in which higher rate tax relief will be given on mortgage interest payments in the current and in the next financial

Total income Cases with relief at excess over basic rate ('000) Total qualiflying mortgage interest (£ million) Mortgage interest relief at basic rate (£ million) Mortgage interest relief at excess over basic rate (£ million) Total mortgage interest relief (£ million) Average relief at basic rate (£) Average relief at excess over basic rate (£) Average total relief (£)
Table 1
Taxpayers with mortgage interest relief at excess over basic rate 1986–87
Single persons
Under £20,000 5 10 5 0 5 600 30 630
£20,000–£25,000 35 100 25 5 30 650 190 840
£25,000–£30,000 20 50 15 10 25 700 380 1,080
£30,000–£40,000 15 40 10 10 20 700 460 1,160
£40,000–£50,000 5 10 5 5 10 750 670 1,420
Over £50,000 10 20 5 5 10 750 820 1,570
Total 90 230 65 35 100 700 360 1,060
Married couples
Under £20,000 0 0 0 0 0 0 0 0
£20,000–£25,000 165 310 90 25 115 540 I10 650
£25,000–£30,000 250 540 155 60 215 630 240 870
£30,000–£40,000 185 420 130 70 200 690 380 1,070
£40,000–£50,000 60 150 45 35 80 730 590 1,320
Over £50,000 50 150 45 45 90 770 770 1,540
Total 710 1,570 465 235 700 650 320 970
Single persons and married couples
Under £20,000 5 10 5 0 5 601 30 630
£20,000–£25,000 200 410 115 30 145 581 130 700
£25,000–£30,000 270 590 170 70 240 631 250 880
£30,000–£40,000 200 460 140 80 220 680 390 1,070
£40,000–£50,000 65 160 50 40 90 730 600 1,330
Over £50,000 60 170 50 50 100 770 780 1,550
Total 800 1,800 530 270 800 650 330 970
Table 2
Taxpayers with mortgage interest relief at excess over basic rate 1987–88.
Single persons
Under £20,000 0 0 0 0 0 0 0 0
£20,0004–25,000 40 100 30 10 40 630 200 830
£25,000–£30,000 15 65 15 10 25 700 430 1,130
£30,000–£40,000 15 45 10 10 20 710 590 1,300
£40,000–£50,000 10 20 5 5 10 730 800 1,530
Over £50,000 10 30 10 10 20 750 900 1,650
Total 100 260 70 45 115 670 430 1,100
Married couples
Under £20,000 0 0 0 0 0 0 0 0
£20,000425,000 140 280 70 10 80 560 100 660
£25,000–£30,000 275 585 165 70 235 570 260 830
£30,000–£40,000 235 555 150 100 250 640 420 1,060
£40,000–£50,000 75 190 55 50 105 660 630 1,290
Over £50,000 75 210 50 65 115 720 840 1,560
Total 800 1,820 490 295 785 620 380 1,000
year, together with (a) the gross amount of interest qualifying for relief, (b) the amount of higher rate relief payable and (c) the number of recipients of working age and their distribution by personal category and by range of gross income, together with the average amount of relief given at the standard and higher rates.

Mr. Norman Lamont

[pursuant tohisreply, 23 March 1987, c. 40]: Estimates are in the tables. These are based on projections from the 1984–85 survey of personal incomes, and they are therefore subject to revision. I regret that it is not possible to provide reliable separate estimates for the small number of high income elderly taxpayers with mortgages.

Total income Cases with relief at excess over basic rate ('000) Total qualiflying mortgage interest (£ million) Mortgage interest relief at basic rate (£ million) Mortgage interest relief at excess over basic rate (£ million) Total mortgage interest relief (£ million) Average relief at basic rate (£) Average relief at excess over basic rate (£) Average total relief (£)
Single persons and married couples
Under £20,000 0 0 0 0 0 0 0 0
£20,000–£25,000 180 380 100 20 120 580 130 710
£25,000–£30,000 300 650 180 80 260 590 270 860
£30,000–£40,000 250 600 160 110 270 650 430 1,080
£40,000–£50,000 85 210 60 55 115 670 630 1,300
Over £50,000 85 240 60 75 135 730 840 1,570
Total 900 2,080 560 340 900 620 380 1,000
Note: Assuming interest rates of 12.25 per cent. in April 1987 and 11.25 per cent. subsequently.