§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will provide an estimate of the saving to the Exchequer in a full year at the proposed rates of tax for 1987–88 of offsetting investment income against mortgage interest payments for relief from income tax.
§ Mr. Norman LamontThe extent of any saving would depend upon the precise rules proposed for offsetting investment income against payments of mortgage interest and, in particular, on the way in which this restriction would impinge on the system of mortgage interest relief at source (MIRAS).
Mortgage Advances by Building Societies Year Advances for all purposes net of repayments Gross advances for all purposes of which: Gross advances for purchase of dwellings Total estimated purchase price of dwellings on which advances in C were made C as A percentage of D (A) (B) (C) (D) (E) £ million £ million £ million £ million per cent. 1983 10,928 19,263 17,197 25,119 68.5 1984 14,572 24,034 21,537 31,522 68.3 1985 14,711 26,491 23,275 33,405 69.7 1986 19,072 36,619 31,407 45,055 69.7 Sources:
Financial Statistics—Tables 7.6 and 7.8.
Housing and Construction Statistics—Tables 1.9 and 1.13.