asked the Minister for Finance the loss to an individual on each of the standard income tax rates who has a 20 year mortgage of (a) £20,000 (b) £25,000 and (c) £30,000 through the reduction of 10 per cent in the amount of interest allowable for income tax relief purposes in this year.
Written Answers. - Income Tax Relief.
70.
The estimated effect on the income tax liability of (i) a married taxpayer and (ii) a single taxpayer is as follows:
|
Income Tax Increase |
||||||
|
(i) |
(ii) |
|||||
|
Married Person |
Single Person |
|||||
|
Loan Amount |
Tax Rate 35% |
Tax Rate 48% |
Tax Rate 58% |
Tax Rate 35% |
Tax Rate 48% |
Tax Rate 58% |
|
£ |
£ |
£ |
£ |
£ |
£ |
£ |
|
20,000 |
68.3 |
93.6 |
113.1 |
68.3 |
93.6 |
113.1 |
|
25,000 |
85.3 |
117.0 |
141.4 |
70.0 |
96.0 |
116.0 |
|
30,000 |
102.4 |
140.4 |
169.7 |
70.0 |
96.0 |
116.0 |
Notes:
(1) The examples assume that the taxpayer pays interest at the current mortgage rate of 9.75 per cent on the amounts mentioned.
(2) The income tax increase is the extra tax which would be payable in a full income tax year at the present mortgage interest rate of 9.75 per cent and at current income tax rates.