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could save large amounts of tax. At the same time, tax income for the government was significantly reduced by this tax relief. Thus, MIRAS was brought in as a way to reduce this loss of tax, as well as mitigating the inequality between home-owners and it achieved this by limiting the tax relief to be given through MIRAS to the basic rate of tax.
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MIRAS built on the Option
Mortgage Scheme of the 1970s, which had also offered reduced repayments as an alternative to reclaiming the tax relief. Its aim was to get over the problem that some borrowers on low incomes might not have sufficient income to claim back as much tax as higher tax payers. So
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Like the Option
Mortgage Scheme, MIRAS also aimed to deal with the problem of inequality between borrowers. In the mid-1970s the top rate of income tax was 83% on an income above £20,000 a year. Unlimited mortgage interest relief set against these high levels of tax meant that high-income borrowers
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increased the size of loans eligible for tax relief on interest from £25,000 to £30,000. It had previously been announced that MIRAS would come into operation from April 1983. Unmarried couples with joint mortgages could pool their allowances to £60,000, a provision known as
Multiple Mortgage Tax
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ended the option to pool allowances from August 1988. Lawson later publicly expressed regret at not having implemented the change with effect from the time of the budget, as it is generally accepted that the rush to beat the deadline fuelled a sharp increase in house prices.
58:, ended this tax relief for all loans except for business purposes or for home buyers. This meant that borrowers could no longer claim tax relief on, for example, the interest on bank loans or overdrafts.
26:, was a housing tax relief scheme in the United Kingdom from 1983 to 2000, which was introduced as a way of reducing the amount of tax relief granted to mortgage borrowers.
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according to a 1975 booklet describing the scheme at the time, it aimed to provide “benefits roughly equal to those that are available to people with higher incomes.”
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repayments that already included tax relief on interest, instead of the traditional method of reclaiming the tax from the
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Tax relief on interest had been available since income tax was introduced in the early 19th century but in 1969 the then
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There is a similar scheme in the
Republic of Ireland, although not available for mortgages drawn down after 2013.
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206:"The Income Tax (Interest Relief) (No. 2) Regulations 1983"
145:"Mortgage Interest (Tax Relief) - Hansard - UK Parliament"
345:"Mortgage Interest Relief (Tax Relief at Source - TRS)"
34:As its name suggests, it allowed borrowers to make
318:Jones, Rupert; Jones, By Rupert (10 March 1999).
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295:Bank of England Statistics Diary January 2007
320:"'Time is right' for mortgage relief to end"
194:. Central Office of Information. p. 2.
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99:, who argued it had become a middle class
91:In 1994 the rate of relief was reduced by
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388:History of taxation in the United Kingdom
74:Relief. This remained in place until the
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190:Department of the Environment (1975).
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192:Buying a home with an option mortgage
128:Is it time for the return of Miras?
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16:United Kingdom government scheme
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158:"The Times". 16 April 1969: 25.
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373:UK mortgage terminology
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329:30 November
76:1988 Budget
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382:Categories
354:30 January
216:12 October
115:References
367:See also
298:Archived
36:mortgage
30:Function
349:Revenue
78:, when
46:History
24:MIRAS
22:, or
356:2019
331:2019
282:help
250:help
218:2023
177:help
101:perk
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