Dáil Éireann debate -
Thursday, 15 Oct 1992

Vol. 423 No. 6

Written Answers. - Tax Deductible Loan Interest.

Paul Bradford

Question:

76 Mr. Bradford asked the Minister for Education with reference to Parliamentary Question No. 106 of 26 May 1992, the reason interest payable on loans used to finance land purchase or other capital development is not allowed as a deductable expense under the higher education grants scheme; the way in which this can be justified when profits earned on the purchased land or through extra capital development with the borrowed money are taken into account in determining total farm income; his views on whether this is an anomaly which must be rectified; and if he will make a statement on the matter.

Minister for Education (Mr. S. Brennan)

As a result of a review of third level student support schemes I have introduced major improvements in the 1992 Higher Education Grants Scheme including a substantial increase in income eligibility limits. Interest on borrowing for capital purposes has never been taken into account as a deduction when determining reckonable income and no change in this regard was made in the present Higher Education Grant Scheme. Third level student suport schemes are being further reviewed and all relevant matters relating to the calculation of reckonable income will be taken into account.