MIRAS ACRONYM (BUSINESS WORLD)

Short for mortgage interest relief at source, a scheme providing for people paying off house-purchase loans in the UK to have the tax relief on their interest repayments paid by the Government direct to the company providing the loan. Etymology: The initial letters of Mortgage Interest Relief At Source. History and Usage: The scheme, which was designed to simplify the system of tax relief, was introduced in 1983 to provide direct tax relief on the interest paid on loans of up to ø30,000 (or on the first ø30,000 of larger loans). At a time when the Government was keen to encourage home ownership, MIRAS made possible mortgages on a very high proportion of the purchase price of a house, since it was no longer necessary to find the full repayment and later reclaim the tax relief. Most people now get basic tax relief under the system known as MIRAS (Mortgage Interest Relief At Source). Under MIRAS, you pay a reduced amount to the lender and the Government makes up the difference. Which? Tax-Saving Guide March 1989, p. 26