HC Deb 04 March 1994 vol 238 cc911-2W
Mr. Hoon

To ask the Chancellor of the Exchequer what would be the revenue saving of the abolition of mortgage interest tax relief, assuming present rates of interest in(a) 1993–94, (b) 1994–95 and (c) 1995–96.

Mr. Dorrell

The cost of mortgage interest relief is estimated to be £4.3 billion in 1993–94, £3.4 billion in 1994–95 and £2.8 billion in 1995–96. These estimates are based on actual mortgage interest rates throughout 1993–94 and the assumption that they remain at their current levels for the next two years. They assume relief is available at 25 per cent. in 1993–94, 20 per cent. in 1994–95 and 15 per cent. in 1995–96.