Vol. 437 No. 6
194 Mr. Yates asked the Minister for Finance the cost of mortgage relief in 1993 arising out of the changes made in the 1993 budget, and the lowering of interest rates; and if the cost was less than that anticipated, he will quantify the extent of this.
The relevant statistics available are in terms of post-budget 1993.
The cost to the Exchequer of mortgage interest relief in terms of revenue foregone in the period from 6 April 1993 to 31 December 1993 inclusive, that is, the period in 1993 when the budget changes and the lower interest rates were effective, is estimated at £87 million. This estimate is some £62 million less than the corresponding cost estimated at the time of the 1993 budget.
195 Mr. Yates asked the Minister for Finance the cost of maintaining the VHI tax relief in 1994.
The full year cost to the Exchequer, estimated by reference to the income tax year 1994-95, of maintaining the current tax relief for medical insurance is expected to be of the order of £70 million.
196 Mr. Yates asked the Minister for Finance the saving to the Exchequer or the increase in revenue if the allowances of mortgage relief and VHI relief were only to be allocated at the standard rate of tax.
The full year yield to the Exchequer, estimated by reference to the income tax year 1994-95, arising from confining tax relief to a maximum rate of 27 per cent is a follows:
|
Relief |
Yield |
|
£m |
|
|
Mortgage Interest |
55.4 |
|
VHI |
25.4 |
