§ Mr. David NicholsonTo ask the Chancellor of the Exchequer what estimate he has made of the consequences of the income tax and national insurance measures announced in the March and November budgets, for a married man with two children aged under 16 years with(a) an earned income of £20,000 and a mortgage of £50,000, (b) an earned income of £40,000 and a mortgage of £90,000 and (c) an earned income of £60,000 and a mortgage of £150,000 in both the 1994–95 and 1995–96 financial years.
972W
§ Mr. DorrellThe additional income tax and national insurance contribution liabilities are given in the table.
Additional income tax and national insurance liability1 (£ per year) for married man2 with Earned income =£20,000 Mortgage =£50,000 Earned income =£40,000 Mortgage =£90,000 Earned income =£60,000 Mortgage =£150,000 1994–95 348 676 676 1995–96 554 882 882 1Additional liability compared with 1993–94 regime. The 1995–96 figures take no account of statutory indexation of allowances and thresholds. The estimates are calculated using the current mortgage interest rate of 8 per cent., which does not take account of the reduction in base rate announced on 23 November. 2The presence of children aged under 16 years in a family does not affect income tax or national insurance liabilities. The figures assume that the married man has the full married couple's allowance. The effect of the March and November Buget measures on mortgage interest relief is the same for all mortgages of £30,000 or more.