John Browne (Wexford, Fianna Fail)
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48. To ask the Minister for Finance if where graduate-entry medicine students have to pay the cost of fees and therefore take out student loans, these loan repayments are tax deductible; and if he will make a statement on the matter. [30519/14]

Michael Noonan (Limerick City, Fine Gael)
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I assume the Deputy is referring to the graduate entry programme which provides undergraduate medical education of four years duration and has been developed to produce medical graduates with the ability to successfully undertake an internship and thereafter to gain full registration with the Medical Council. The programme is supported by a combination of student fees, State funding and other income. While in this case the fees could be considered high, in the majority of cases where third level tuition fees are payable they are at much lower levels.  In addition, those participating in the programme must already have acquired an undergraduate degree, the fees for which would have been covered by the State in the vast majority of cases.

I would point out that tax relief at the standard rate of 20% is available in respect of qualifying fees paid by an individual for a third level education course, including a postgraduate course. Qualifying fees mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the "student contribution".  No other fees e.g. administration fees, examination fees, capitation fees, qualify for tax relief.  Tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means are deducted in arriving at the net qualifying fees. A claim for relief may be made in respect of a number of students. 

In making a claim for relief for the tax year 2014, the maximum amount of fees that can qualify for the relief is €7,000 per student, but an amount set out in the legislation must be disregarded from each claim (whether in respect of one or more students).  Where a claim for relief includes fees paid on behalf of at least one full-time student, the disregard is €2,750.  Where a claim for relief includes fees solely paid on behalf of a part-time student or part-time students, the amount disregarded is €1,375.  Thus, for example, an individual undertaking a graduate entry medical course on a full-time basis, where tuition fees of €15,000 per student apply, would attract relief of €850 made up as follows: