HC Deb 10 June 1988 vol 134 cc700-2W
Mr. Soley

To ask the Chancellor of the Exchequer what has been the total cost of mortgage interest tax relief for the United Kingdom as a whole and for England, also expressed in terms of the cost per mortgagor receiving tax relief and the cost per owner-occupied dwelling, for the financial years 1979–80 to 1987–88; and what is the estimated cost in respect of 1988–89.

Mr. Norman Lamont

Estimates for the United Kingdom for the years 1979–80 to 1988–89 and for England from 1979–80 to 1982–83 are given in the table. Figures for 1983–84 onwards include the cost of relief given to non-taxpayers.

Cost of mortgage interest relief Average cost of relief per mortgagor Average cost of relief per owner-occupied dwelling
(£ million) (£) (£)
England UK England UK England UK
1979–80 1,300 1,450 250 245 130 125
1980–81 1,735 1,960 335 335 165 160
1981–82 1,820 2,050 350 350 170 165
1982–83 1,895 2,150 350 350 170 170
1983–84 n/a 2,780 n/a 370 n/a 210
1984–85 n/a 3,580 n/a 460 n/a 265
1985–86 n/a 4,750 n/a 595 n/a 340
1986–871 n/a 4,750 n/a 580 n/a 335
1987–881 n/a 4,850 n/a 575 n/a 330
1988–891 n/a 4,250 n/a 495 n/a n/a
1 Provisional.
n/a Not available.

Following the introduction of MIRAS in April 1983, regional information on the cost of mortgage interest relief cannot be extracted from Inland Revenue records. The regional distribution of mortgage interest can be derived from the family expenditure survey (FES), but, as the sample size for the FES is relatively small, it is not possible to provide robust estimates of regional trends for the period after 1982–83. Separate figures for England for 1983–84 to 1988–89 are therefore not available.

Mr. Chris Smith

To ask the Chancellor of the Exchequer if he will publish a table showing the total value of mortgage interest relief forgone as tax income by the Inland Revenue, the total number of recipients of this relief and the average amount of relief received per mortgagor, respectively, in the United Kingdom, in England and in Greater London in each tax year from 1978–79 to 1987–88; and if he will give an estimate for 1988–89.

Mr. Norman Lamont

[holding answer 7 June 1988]: Estimates for the years 1978–79 to 1982–83 have been derived from the results of the survey of personal incomes and are given in the table.

Mortgage interest tax relief
Total cost Number of mortgagors Average cost of relief
£ million thousands £
1978–79
London 170 680 250
England 995 5,010 200
United Kingdom 1,110 5,600 200
1979–80
London 235 760 310
England 1,300 5,250 250
United Kingdom 1,450 5,890 245
1980–81
London 280 710 395
England 1,735 5,210 335
United Kingdom 1,960 5,860 335
1981–82
London 290 660 440
England 1,820 5,190 350
United Kingdom 2,050 5,850 350
1982–83
London 260 620 420

Total cost Number of mortgagors Average cost of relief
£ million thousands £
England 1,895 5,400 350
United Kingdom 2,150 6,130 350

Following the introduction of MIRAS in April 1983, regional information on the cost of mortgage interest relief cannot be extracted from Inland Revenue records. The regional distribution of mortgage interest can be estimated from the family expenditure survey (FES), but, as the sample size for the FES is relatively small, it is not possible to provide robust estimates of regional trends for the period after 1982–83. Accordingly, the following table shows the relevant figures for 1983–84 to 1988–89 for the United Kingdom only. FES data for 1983 to 1985 suggest that about 88 per cent. of total mortgage interest relief is attributable to England and 14.5 per cent. to London. The corresponding percentages for the number of mortgagors are 88 per cent. for England and 10.6 per cent. for London.

United Kingdom
Cost of mortgage interest relief1 Number of mortgagors Average cost of relief
£ million thousands £
1983–84 2,780 7,500 370
1984–85 3,580 7,750 460
1985–86 4,750 8,000 595
1986–872 4,750 8,200 580
1987–882 4,850 8,400 575
1988–892 4,250 8,600 495
1 Includes the cost of mortgage interest relief given to non-taxpayers.
2 Provisional.