Below is the text of Mr Major’s written Parliamentary Answer on Mortgage Tax Relief on 15th November 1989.
Mr. Denzil Davies To ask the Chancellor of the Exchequer what is the estimated cost in the present fiscal year of mortgage tax relief at the higher rate of income tax.
Mr. Major [holding answer 13 November 1989]: The estimated cost in 1989–90 of mortgage tax relief at excess over the basic rate of income tax is £430. This estimate is based on a projection of the 1986–87 survey of personal incomes and is therefore provisional.
Mr. Denzil Davies To ask the Chancellor of the Exchequer what would be the additional cost to the Exchequer, in a full year, assuming mortgage interest rates of 14.5 per cent. and at present tax rates, of increasing the mortgage interest income tax relief from a ceiling of £30,000 to a ceiling of £45,000.
Mr. Major [holding answer 13 November 1989]: The direct revenue cost in a full year, at 1989–90 levels and assuming mortgage interest rates of 14.5 per cent. throughout the year, of increasing the ceiling for mortgage interest relief from £30,000 to £45,000 is estimated to be about £900 million. This estimate makes no allowance for any consequential changes to the distribution of outstanding mortgages.