Noel Ahern (Dublin North West, Fianna Fail)
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Question 159: To ask the Minister for Finance the position regarding tax relief on third level fees; if tax relief is available for all universities including private; if same can be claimed by the parents and if there are any conditions regarding age, living at home and so on; if the rate is 20% or 41%; and if it can be claimed by others, for example brothers or sisters, if parents were not in tax net. [48019/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Section 473A of the Taxes Consolidation Act 1997 provides income tax relief in respect of the cost of tuition fees paid on behalf of a student who is undertaking 'an approved course' at 'an approved college'. A list of the approved courses and approved colleges can be found on the Revenue website at www.revenue.ie. The maximum limit on tuition fees for each course for the academic year 2010 / 2011 is €5,000 @ 20% (standard rate).

The tax relief is confined to tuition fees only and does not extend to items such as registration fees, administration fees, accommodation, etc. Tuition fees that are, or will be, met directly or indirectly by grants, scholarships, employer contribution or other means are to be deducted in arriving at the net fees qualifying for tax relief. The relief may be claimed at the end of the tax year or, for PAYE taxpayers, the relief may be claimed via the PAYE system during the tax year when the fees have been paid.

There is no age restriction or requirement to live at home attaching to the relief. For the tax year 2007 onwards, an individual can claim tax relief on fees paid as long as he/she has actually paid the qualifying fees. For example, a parent can claim the tax relief in respect of fees paid in respect of a course pursued by a son or daughter. Likewise, a brother or sister of a student can claim the tax relief provided that the brother or sister actually paid the fees. However, a brother or sister of a student cannot claim the tax relief if the fees are paid by their parents.