asked the Minister for Finance the estimated number of persons who enjoy a preferential rate of house mortgage interest, the average extra payment by each of the employees concerned, and the total net income to the Exchequer from the abolition of this relief.
Written Answers. - House Mortgage Interest Rate.
140.
Relief in respect of interest on loans at preferential rates of interest is not being abolished. It is being scaled down so that the relief will be calculated by reference to a specified rate of interest.
The relief in respect of loan interest is allowable whether the loans are for house purchase or for other purposes. It is not possible to segregate the house purchase element from the other elements involved, and, therefore, it is regretted that it is not possible to give the Deputy the information he requests in the precise form required.
It may be taken, however, that the gain to the Exchequer from the restriction proposed is estimated at about £0.5 million, but as the overall limit for interest purposes is being raised from £2,000 to £2,400, and this will cost approximately £0.5 million, it is not anticipated that there will be any net gain from these two proposals.