§ Mr. Gould
asked the Chancellor of the Exchequer what saving to the Exchequer would arise if tax exemptions, such as those relating to mortgage interest repayments and business expenses, were claimed against that part of income which is liable to the standard rate of income tax, rather than that part of income which is liable to the highest rate applicable.
§ Mr. Robert Sheldon
The estimated yield for 1975–76 from restricting relief on mortgage interest payments to the basic rate of income tax is about £60 million. I am not sure what other special exemptions for tax purposes my hon. Friend has in mind; there is no such exemption for allowable business expenses, which are merely those items352W of expenditure which are deducted in computing profits assessable to tax.