A message to potential Tory voters and homeowners!
Well actually to opinion poll respondents, but it's much the same thing. It seems to me that the 'hardworking families' of Great Britain have given themselves to the Conservative Party too easily. When things were looking less good for the Tories, they made large cuts in inheritance tax. This is not likely to benefit many households, but it was popular (partly I think because of confusion over the incidence of the tax). Even more popular, and with far greater benefits to far more households, would be the reintroduction of mortgage interest tax relief. This has been abolished entirely since 2000-01, and was at steadily reduced rates from about 1990 (and only on £30,000 of mortgage loans, a rate that itself was hardly changed from the 1970s; before then it was unlimited althogh slightly different in application).Scaling that £30,000 up by house prices, we get about £90,000, so call it £100,000. At the current mortgage rate that is an interest bill of about £500/month. Tax relief on this at the lower rate would be something like £100/m and at the higher rate £200/month. Outstanding mortage debt is over £1tr, so if all of these got basic rate tax relief it would cost something like £12-15bn. Not all mortgage payers would be eligible, and of course a £100,000 cap would mean much lower figures - i.e. easily affordable for a Conservative opposition looking to make a splash, even if extended to higher-rate taxpayers.
But it's too late now - perhaps Gordon will consider it?
Labels: conservatives
posted by Matthew @ 7/13/2008 05:49:00 PM
Comments: 0
