§ Mr. Nicholas WintertonTo ask the Chancellor of the Exchequer what assessment he has made of the possible effect of taxation on those benefits paid under insurance policies purchased to provide protection to mortgage holders following his proposed changes to income support for mortgage interest; what specific proposals he has for the tax treatment of such benefits with particular reference to any period for which they would be untaxed; and if he will make a statement. [21107]
§ Sir George YoungUnder the Secretary of State for Social Security's proposals, there will be no entitlement to income support in respect of mortgage interest payments for a period of nine months for new borrowers. Benefits paid under mortgage protection insurance policies that provide cover for this period are not liable to tax, provided the maximum period during which benefits can be paid does not exceed one year.