asked the Minister for Finance the estimated sum available for family income support through an alternative mechanism if (a) tax-free allowances for dependent children (b) mortgage interest relief and (c) income-splitting were to be removed.
Written Answers. - Family Income Support.
370.
Calculated by reference to the current year, the full year savings to the Exchequer resulting from the withdrawal of the allowances and reliefs referred to by the Deputy are estimated as follows:
(a) £41 million;
(b) Information is not available on which an accurate estimate of the separate cost to the Exchequer of income tax relief on mortgage interest, as distinct from interest on other borrowings, could be made. The cost of relief on all interest is estimated at £36 million, of which £24 million is tentatively estimated to account for mortgage interest.
(c) The withdrawal of "income-splitting", that is effectively the doubling of the income tax rate bands for all married couples, would result in a saving to the Exchequer of an estimated £72 million. This measure combined with the reduction of the married allowance, £2,230 to the level of the single allowance, £1,115 would result in an estimated saving to the Exchequer of the order of £200 million.