§ Mr. Churchill
To ask the Chancellor of the Exchequer what is his estimate of the likely increase in tax receipts in the year 1991–92 in the event that higher rate tax relief on mortgages were to be disallowed.
§ Mr. Maude
[holding answer 11 February 1991]: The direct revenue cost of mortgage interest relief for 1990–91 at a rate in excess of the basic rate is provisionally estimated to be £470 million. A little over half this accrual cost is reflected in 1990–91 receipts. The estimate is based on the assumption that interest rates remain at their current levels.