§ Mr. John MarshallTo ask the Chancellor of the Exchequer what is the estimated cost in 1988–89 of increasing mortgage tax relief to £35,000.
§ Mr. Norman LamontThe direct revenue cost, in 1987–88 terms, of an increase in the ceiling for mortgage interest relief to £35,000 is estimated to be about £165 million. This estimate makes no allowance for any consequential changes to the distribution of outstanding mortgages. It would be premature to provide an estimate for 1988–89, since the cost will depend on the amounts of mortgage lending and level of interest rates, as well as on the 1988–89 income tax rates and bands.
§ Mr. John MarshallTo ask the Chancellor of the Exchequer what would be the estimated saving to the revenue of allowing only one individual to claim tax relief on any mortgage.
§ Mr. Norman LamontI assume that my hon. Friend is interested in the cost of the additional mortgage interest relief which sharers can receive in respect of a shared loan which exceeds £30,000. The direct revenue cost in 1987–88 of this additional relief is estimated to be about £25 million.