Married Women (Investment Income) (Hansard, 7 November 1988)

§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report the amount of investment income returned in 1986–87 in respect of (a) earning and (b) non-earning wives by range of the total income of the married couple, distinguishing separately those cases in which a wife's earnings election was in force.

§ Mr. Norman Lamont
Available estimates are in the table. All estimates are provisional and subject to a wide margin of error because they are based on a projection of the 1985–86 survey of personal incomes and the coverage of investment income in the survey is incomplete. In some cases, investment income on which basic rate liability is satisfied by deduction at source is not reported. No reliable estimates can be given for wives where the total income of the married couple is less than £5,000.
replies indicates the distribution of the cost of excess over basic rate relief on mortgage interest and of the number of mortgagors affected.

§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer whether, further to his reply dated 19 October,Official Report, columns 936–38, concerning higher-rate taxpayers, he will publish in the Official Report a table showing his estimate of the average of mortgage interest paid in each case.

§ Mr. Norman Lamont
The table in the previous reply shows the average amount of mortgage interest relief received. As mortgage interest that is above the limit for interest that qualifies for relief does not have to be reported to the Inland Revenue, estimates of the average mortgage interest paid by each of the categories of tax units in the previous reply are not available.

§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer whether, further to his replies dated 29 July concerning mortgage interest relief,Official Report, columns 732–35, he will publish in the Official Report the rate of mortgage interest assumed in each case in calculating the amount of relief.

§ Mr. Norman Lamont
The estimates given were based on the actual mortgage interest rate between April and July 1988 and on the assumption that the mortgage interest for the remainder of the financial year remained at the level which took effect in August 1988.

§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer whether he will publish in theOfficial Report a table showing for each of the relevant income bands 37W for single persons and one-earner and two-earner married couples of non-pensionable age the increase in revenue yield in 1988–89 from (a) disallowing mortgage interest relief against higher rate tax and (b) not including the amount of interest paid as an allowance against income in assessing the starting point for higher rate tax.

§ Mr. Norman Lamont
[holding answer 3 November 1988]: The latest estimate of the direct revenue yield, in 1988–89 terms, of restricting relief on mortgage interest to the basic rate is £320 million. Of this, £50 million relates to basic rate taxpayers who are kept out of higher rate tax by higher rate relief on mortgage interest. The distribution of relief is indicated in my reply of 29 July at columns 731–34. It is clear from the table in that reply that almost all the yield would arise from non-aged tax units.

§ Mr. Austin Mitchell
To ask the Chancellor of the Exchequer what is the reason for not setting off investment income against mortgage interest tax relief in cases where investment income amounts to more than £500 a year; and if he will publish in theOfficial Report his estimate of the

Wives' earnings election 1988–89

Income (lower limit) By range of joint total income of married couple By range of wives earned income By range of husbands total income¹

£ per annum Number (thousands) Cost (£ million) Number (thousands) Cost (£ million) Number (thousands) Cost (£ million)

20,000 — — 25 45 95 60

25,000 10 ²— 10 25 60 50

30,000 85 20 5 10 30 35

35,000 80 55 ²— 5 15 15

40,000 55 60 5 5 20 20

50,000 70 110 5 10 30 45

All ranges 300 245 50 100 250 225

¹ Husband's earned income plus husband and wife's investment income.

² Less than £1 million or 1,000.

Wives' earnings election 1988–89
Income (lower limit)	By range of joint total income of married couple	By range of wives earned income	By range of husbands total income¹
£ per annum	Number (thousands)	Cost (£ million)	Number (thousands)	Cost (£ million)	Number (thousands)	Cost (£ million)
20,000	—	—	25	45	95	60
25,000	10	²—	10	25	60	50
30,000	85	20	5	10	30	35
35,000	80	55	²—	5	15	15
40,000	55	60	5	5	20	20
50,000	70	110	5	10	30	45
All ranges	300	245	50	100	250	225
¹ Husband's earned income plus husband and wife's investment income.
² Less than £1 million or 1,000.