§ Mr. BoothTo ask the Chancellor of the Exchequer what savings would accrue to the Treasury if M IRAS was phased out in three equal stages in three years.
§ Mr. DorrellThe cost of mortgage interest tax relief at the proposed rate of 20 per cent. for 1994–95 is estimated to be £3.6 billion. Based on the estimated 1994–95 distribution of mortgages, if the relief were phased out in equal stages over a three-year period the estimated yield would be £1.2 billion, £2.4 billion and £3.6 billion.
666WThese estimates adopt the conventional assumption that there will be no change in interest rates from the current rate of 8 per cent.