Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 473A of the Taxes Consolidation Act 1997 provides for income tax relief in respect of qualifying tuition fees paid by an individual for a third level education course (including a postgraduate course), subject to the conditions set out in that section. The relief is granted at the standard rate of income tax (currently 20%), where an individual pays “qualifying fees” for an approved course whether on his or her own behalf or on behalf of another individual.

“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 charges and levies qualify for tax relief e.g. administration fees, student centre levy, examination fees, capitation fees. 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.

The maximum amount of fees that can qualify for the relief is €7,000 per person, per course, per academic year. Each claim is subject to a single disregard amount each tax year. This amount is taken away from the total qualifying fees for the claim, such that relief can't be received on the disregarded portion. The disregard is currently €3,000 in the case of a full-time student and €1,500 for a part time student. If a claim has been made for more than one student or course, this disregard amount will only be deducted from the claim once.

Full details of the relief, including the conditions that apply, are set out on the Revenue website at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx

While there is no specific provision for tax relief in relation to the accommodation costs associated with attending third level education, the Rent-a-Room scheme supports the accommodation needs of third level students and others by providing significant levels of relief to accommodation providers offering rooms for rent within their sole or main residence. The relief is offered,inter alia, to providers of accommodation for full or part-time students, including lettings for an academic year, an academic term or four-day-a-week "digs".

As the Deputy will appreciate, proposals in respect of tax expenditures are dealt with in the context of the annual Budget and Finance Bill process. When considering such measures, I must be mindful of the public finances and the many demands on the Exchequer; tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base. Under my Department's Tax Expenditure Guidelines, tax measures should only be considered in circumstances where there is a demonstrable market failure and where a tax-based incentive is more efficient than a direct expenditure intervention.