HC Deb 28 January 1988 vol 126 cc367-8W
Mr. Gordon Brown

To ask the Chancellor of the Exchequer if he will(a) publish a table on restructuring mortgage interest tax relief to different rates of taxation for 1987–88, (b) report how many mortgagors receive relief at rates in excess of the basic rates of income tax and (c) report how many persons currently paying tax only at standard rate would pay tax at a higher rate if mortgage tax relief were removed from higher rates of tax; and what would be the additional income to the Exchequer, in the manner of his answer of 8 April 1986, Official Report, column 100.

Mr. Norman Lamont

[holding answer 26 January 1988]: The direct revenue yields in a full year, at 1987–88 levels, from restricting mortgage interest relief are as £30,000 and over; and if he will further break down the information for each taxable income bracket into the categories: married, single and self-employed.

Mr. Norman Lamont

[holding answer 20 January 1988]:]: The table gives estimates of tax units (ie single people or married couples) who have some income tax liability in 1987–88. Figures are given (a) for all tax units and (b) for tax units with children for each specified range of gross income assessed for income tax purposes.

follows. The estimates make no allowance for the effect of any consequential changes to the distribution of outstanding mortgages.

Rate of mortgage interest relief Direct revenue yield
per cent. £ million
15 2,240
20 1,440
25 650
27 330

It is estimated that, in 1987–88, about 930,000 mortgagors will have received relief at rates in excess of the basic rate of income tax. Of these, about 190,000 who are currently liable only at basic rate are kept out of higher rates by virtue of their mortgage interest relief.

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