§ Mr. KirkwoodTo ask the Chancellor of the Exchequer what is the estimated full-year revenue effect of applying 235W mortgage interest tax relief to the residence rather than the individual; and what is the estimated effect on the mortgage interest tax relief ceiling if the change is revenue-neutral.
§ Mr. Norman Lamont[holding answer 17 December 1987]: The direct revenue yield, in 1987–88, of a restriction in mortgage interest relief to a loan of up to £30,000 per residence is estimated to be about £25 million. If this were combined with an increase of £1,000 in the ceiling for mortgage interest relief, the change would be approximately revenue-neutral. These estimates make no allowance for any consequential changes to the distribution of outstanding mortgages.
1987–88 1988–89 Replacement of married man's allowance with: Cost1 £ billion Level of allowance £ per annum Cost1 £ billion Level of allowance £ per annum Fully transferable personal allowance 6.0 3,110 6.5 3,240 Half-transferable personal allowance 3.5 3,110 4.0 3,240 1 Full year cost measured on a no-loser basis.