Michael McGrath (Cork South Central, Fianna Fail)
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In relation to the constituent's entitlement to tax reliefs in respect of student fees and rent paid, the following matters are relevant.

Section 473A of the Taxes Consolidation Act 1997 provides for tax relief on third-level tuition fees where an individual incurs “qualifying fees” in respect of an “approved course”.

I am advised by Revenue that qualifying fees mean tuition fees, but do not include administration fees or examination fees, student centre or union levies or accommodation costs.

A list of approved colleges and courses is published on Revenue’s website each year and can be found at: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/approved-colleges-and-courses.aspx

All approved courses provided by publicly funded or duly accredited universities and institutions in other European Union Member States or in the United Kingdom are approved for the purposes of this relief.

The maximum amount which can qualify for relief is €7,000 per course per academic year, and when determining the amount eligible for relief the following amounts must be deducted:

• any portion of tuition fees that are or will be met directly or indirectly by grant, scholarship, employer contribution or other similar means; and
• the first €3,000 paid in respect of a full-time course or €1,500 paid in respect of a part-time course.

To qualify for tax relief an undergraduate course must:

• be carried out in an approved college, and
• last a minimum of two academic years.

To qualify for tax relief a postgraduate course must:

• be carried out in an approved college,
• last a minimum of one academic year but no longer than four academic years, and
• lead to a postgraduate award based on either a thesis or an examination.

Provided all the conditions set out above are met, the undergraduate course and the masters undertaken in Scotland would be eligible for tax relief.

Taxpayers have four years in which they can claim for an expense and receive a tax refund. For example, claims for the 2020 tax year must be made by 31 December 2024.

A claim for tax relief on tuition fees is made by filing an Income Tax Return. For all taxpayers Revenue provides a free, quick and easy to use facility to file an Income Tax Return. For PAYE taxpayers this is done through myAccount with self-assessed taxpayers using ROS.

Further information on filing an Income Tax Return can be found on Revenue’s website as follows:

• for PAYE taxpayers: www.revenue.ie/en/jobs-and-pensions/end-of-year-process/index.aspx
• for self-assessed taxpayers: www.revenue.ie/en/online-services/services/common/file-an-income-tax-return.aspx

Further information and guidance on tax relief for tuition fees can be found on Revenue’s website, available at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx .

The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997, is an income tax credit which may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.

The purpose behind the rent tax credit, introduced as a temporary measure, is to assist as part of the overall response to the accommodation shortage in the private rented residential sector in the Republic of Ireland. More specifically, the aim is to provide some financial assistance to renters in that particular sector who may face high rental costs and who do not receive any other housing supports from the State. 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 outside the State nor their parents are currently entitled to the Rent Tax Credit in respect of rent which they have paid for 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.