§ Mr. SoleyTo ask the Chancellor of the Exchequer what the cost would be of increasing mortgage income tax relief from its present level of £30,000 to(a) £35,000 and (b) £40,000; and how much would go to those earning over £20,000 per annum.
§ Mr. Norman Lamont[holding answer 2 February 1989]: The direct revenue cost, at 1988–89 levels, of increases in the ceiling of mortgage interest relief are given in the table. These estimates make no allowance for any consequential changes to the distribution of outstanding mortgages.
Ceiling Cost Cost attributable to tax units with earned income over £20,000 in 1988–89 £ £ million £ million 35,000 230 100 40,000 390 180
§ Mr. McCrindleTo ask the Chancellor of the Exchequer when the mortgage tax relief limit was raised to £30,000; what the additional annual cost to the Exchequer would be if it was raised to £35,000 and £40,000 respectively; and if he will make a statement.
§ Mr. Norman Lamont[holding answer 31 January 1989]: The ceiling for mortgage interest relief was raised 552W to £30,000 in 1983–84. The direct revenue cost, at 1988–89 levels, of increases in the ceiling of mortgage interest relief are given in the table. These estimates make no allowance for any consequential changes to the distribution of outstanding mortgages.
Ceiling £ Cost £ million 35,000 230 40,000 390