§ Mr. DewarTo ask the Chancellor of the Exchequer if he will update the answer of 25 February,Official Report, column 677 on mortgage tax relief giving estimates for 1994–95 and for a full year.
§ Mr. DorrellThe estimated costs at 1994–95 levels of increasing or decreasing the limit for mortgage interest tax relief are shown in the table. The estimates are based on the distribution of existing mortgages and exclude behavioural effects which might result. The figures are based on the conventional assumption of no further changes in interest rates and allow for tax relief at 20 per cent. as announced in the March Budget.
Cost (yield) from increasing (decreasing) the limit on mortgage interest tax relief at 1994–95 levels Limit on size of loan (£) £ million 40,000 600 35,000 300 32,000 100 31,000 100 29,000 (100) 28,000 (200) 25,000 (400) 20,000 (900)