Mortgage Interest Relief At Source

Mortgage Interest Relief at Source, or MIRAS, was a scheme introduced in the United Kingdom by Chancellor of the Exchequer Roy Jenkins in 1969 [1] in a bid to encourage home ownership; it allowed borrowers tax relief for interest payments on their mortgage.

In the 1983 Budget Geoffrey Howe raised the tax allowance from £25,000 to £30,000; unmarried couples with joint mortgages could pool their allowances to £60,000 and this remained unchanged until in the 1988 Budget, when Chancellor of the Exchequer Nigel Lawson ended the option to pool allowances (a provision that had been known as Multiple Mortgage Tax Relief) from August 1988, a decision he later publicly expressed regret at not having implemented with effect from the time of the budget, as it is generally accepted that the rush to beat the deadline from the time of the Budget up until it was ended fueled a sharp increase in house prices.[2]

MIRAS was completely abolished in April 2000 by then Chancellor of the Exchequer (now retired Prime Minister) Gordon Brown who argued it had become a middle class perk.

Receiving MIRAS was one of the justifications given by mortgage advisers when selling endowment mortgages.[citation needed]

With house prices slumping and the British economy going into recession, there are many[who?] arguing for the return of some kind of similar scheme to help those in negative equity and encourage a revival in the housing market.

References

See also


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Look at other dictionaries:

  • mortgage interest relief at source — ( MIRAS) A tax subsidy for individuals with mortgages. 10% of the interest on the first £30,000 of a mortgage is eligible for tax relief. For example, if a mortgage of £30,000 incurred £3,500 of interest in the year, the individual paying the… …   Financial and business terms

  • mortgage interest relief at source — /ˌmɔ:gɪdʒ ˌɪntrəst rɪˌli:f ət sɔ:s/ noun a scheme by which the borrower may repay interest on a mortgage less the standard rate tax which he or she would otherwise have to pay on it (i.e. he or she does not pay the full interest and then reclaim… …   Dictionary of banking and finance

  • mortgage interest relief at source — MIRAS Formerly, an arrangement allowing income tax relief to be given to a mortgagor on the first £30,000 of a loan taken out to purchase a main residence. Introduced in 1982 to encourage home ownership, it was progressively restricted from 1994… …   Accounting dictionary

  • mortgage interest relief at source — MIRAS Formerly, an arrangement allowing income tax relief to be given to a mortgagor on the first £30, 000 of a loan taken out to purchase a main residence. MIRAS was progressively restricted from 1994 and abolished in 2000 …   Big dictionary of business and management

  • mortgage interest tax relief at source — ➔ MIRAS …   Financial and business terms

  • Endowment mortgage — An endowment mortgage is a mortgage loan arranged on an interest only basis where the capital is intended to be repaid by one or more (usually Low Cost) endowment policies. The phrase endowment mortgage is used mainly in the United Kingdom by… …   Wikipedia

  • UK mortgage terminology — This page gives descriptions of UK mortgage terminology which can often confuse borrowers.IntroductionThe UK mortgage market is one of the most innovative and competitive in the world. Most borrowing is funded by either mutual organisations… …   Wikipedia

  • Subprime mortgage crisis — Part of a series on: Late 2000s financial crisis Major dimensions …   Wikipedia

  • ЗАКЛАДНАЯ — (mortgage) Право притязания на собственность, появившееся в результате гарантии/залога под заем или выплату долга, которое утрачивает силу по выплате этого займа или долга. Получатель ссуды, предлагающий этот залог, называется должник по… …   Финансовый словарь

  • ИПОТЕКА — (mortgage) Право притязания на собственность, появившееся в результате гарантии/залога под заем или выплату долга, которое утрачивает силу по выплате этого займа или долга. Получатель ссуды, предлагающий этот залог, называется должник по… …   Финансовый словарь


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