Mortgage Interest Relief (Hansard, 29 October 1990)

HC Deb 29 October 1990 vol 178 c360W 360W

§ Mr. Soley
To ask the Chancellor of the Exchequer what would be the cost of adjusting the maximum ceiling for mortgage interest tax relief to(a) £35,000, (b) £40,000, (c) £45,000 and (d) £50,000 on the assumption that (i) relief continues to be available at the higher marginal tax rate where applicable and (ii) that relief is restricted to the standard 25 per cent. rate of income tax.

§ Mr. Maude
Provisional estimates of the costs of increasing the ceiling are given in the table. The estimates exclude behavioural effects which would be substantial for the higher ceilings.

Direct revenue costs at 1990–91 income levels of raising the ceiling for mortgage interest relief

Ceiling Relief at marginal tax rate Relief at basic rate of 25 per cent.

£ £ million £ million

35,000 440 -90

40,000 790 230

45,000 1,050 470

50,000 1,250 650

Direct revenue costs at 1990–91 income levels of raising the ceiling for mortgage interest relief
Ceiling	Relief at marginal tax rate	Relief at basic rate of 25 per cent.
£	£ million	£ million
35,000	440	-90
40,000	790	230
45,000	1,050	470
50,000	1,250	650