Claire Kerrane (Roscommon-Galway, Sinn Fein)
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222. To ask the Minister for Finance if he will provide an update on intentions to extend consanguinity relief, given the deadline for this relief is approaching and he indicated the measure would be extended in Budget 2023; and if he will make a statement on the matter. [21660/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Stamp duty consanguinity relief, which is available only in respect of farmland, is currently due to expire at the end of 2023. It serves to reduce the stamp duty rate applicable to the acquisition of farmland by qualifying individuals from the current standard rate on non-residential property of 7.5% to 1%. Qualification is primarily determined by the person acquiring the land being closely related to the person disposing of it, but other conditions also apply. It was last extended (by three years) in section 53 of Finance Act 2020.

My Department is currently preparing a report on consanguinity relief which will make recommendations as to its future in terms of whether it should be further extended, and if so for how long and in what form.

As part of this process the views of the main farming bodies, that is the IFA, the ICMSA and Macra na Feirme, have been sought, and I have also written to the Minister for Agriculture Food and the Marine to seek his views and those of his Department.

I expect to receive the aforementioned report for my consideration shortly, and I hope to announce my decision on the future of the relief at Budget time. I also expect that the report will be published at that time, and will include copies of any responses received from the farming bodies and the Minister for Agriculture Food and the Marine.

Holly Cairns (Cork South West, Social Democrats)
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223. To ask the Minister for Finance if the small cider producer excise relief scheme will be extended to include other fermented beverages, such as mead; and if he will make a statement on the matter. [21679/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Finance Act 2022 introduced a 50% excise relief to micro producers of 'cider and perry' as defined in section 73(1) of Finance Act 2003. The scope of the relief applies specifically to cider and perry exceeding 2.8% vol. but not exceeding 8.5% vol. This relief is available on up to 8,000 hectolitres of cider and perry produced by microproducers with an annual production threshold of up to 10,000 hectolitres. On a typical pint of cider or perry, the value of the relief works out at approximately 27c per pint.

While the EU Directive now allows for the extension of the relief to other fermented beverages, the releif scheme has been restricted to cider and perry at commencement this year. This is principally due to the administrative challenges associated with a broader relief as well as a concern around its application for the production of alcopops. The diversity of products in the applicable CN codes and the technical difficulties arising out of monitoring the products, are such that it was considered prudent that the relief be restricted to cider and perry at the outset.

The scope of the relief can be reviewed in the future once it is firmly established. As the relief scheme is only in operation for a number of months, there are no current plans to extend scope.

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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224. To ask the Minister for Finance whether students who attend university in the UK can write off the cost of their student accommodation against tax; whether any consideration is being given to providing such relief; and if he will make a statement on the matter. [21696/23]

Michael McGrath (Cork South Central, Fianna Fail)
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There are currently no tax reliefs specifically targeting UK-based student accommodation costs for Irish taxpayers attending university in the UK. I have no plans, at present, in this regard.

In relation to the recently introduced Rent Tax Credit, which is provided for in section 473B of the Taxes Consolidation Act 1997 (TCA), the purpose behind this temporary measure is to assist as part of the overall response to the accommodation shortage in the private rented residential sector in Ireland. More specifically, the aim is to provide some financial assistance to renters in that particular sector who may face high rental costs. Owing to this, the eligibility criteria for the credit specify that the rental property concerned must be a residential property located in the State. As such, neither students attending university in the UK nor their parents are currently entitled to the Rent Tax Credit in respect of rent which they have paid for student accommodation outside the State.

As the Deputy will appreciate, in designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible consistent with the overall policy intention behind the measure and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.

Further details in relation to the Rent Tax Credit can be found on Revenue’s website at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11A.pdf.

It should also be noted that section 473A of the TCA provides for income tax relief in respect of qualifying fees paid by an individual for one or more approved third level education courses, subject to the conditions. Qualifying fees in this context mean tuition fees, but do not include administration fees or examination fees, student centre or union levies, or accommodation costs.

Approved courses may include full-time and part-time undergraduate and postgraduate courses provided by certain approved institutions of higher education in European Union (EU) Member States or in the United Kingdom (UK). Lists of approved higher education institutions and courses are published on the Revenue website each year at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/approved-colleges-and-courses.aspx

In addition to the above, there are also exemptions from tax that apply to payments received by students including, for example, maintenance grant payments made to students in higher education under Student Universal Support Ireland (SUSI). Also, income arising from a scholarship is exempt from income tax, USC and PRSI, where the conditions for relief in section 193 TCA are met. Further details in relation to the scholarship exemption can be found on Revenue’s website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-26.pdf.