Dáil Éireann debate -
Tuesday, 24 May 1994

Vol. 443 No. 1

Written Answers. - Covenant System.

Paul McGrath

Question:

49 Mr. McGrath asked the Minister for Finance the cost to the Exchequer of the covenant system; the number of people benefiting from this system; the number availing of a covenant from a parent or grandparent; and the number availing from another source.

Minister for Finance (Mr. B. Ahern)

The breakdown of the cost of tax relief for covenants and the numbers of claimants, estimated by reference to the current income tax year, is as follows:

Tax Relief for Covenants.

Type of Covenant	Number of Claimants	Cost
		£m
Maintenance Payments	1,700	2.6
Natural Sciences	50	0.5
Other Covenants	38,200	34.3
Total	39,950	37.4

These figures are provisional and are likely to be revised.

Covenants in favour of children or grandchildren cannot be identified separately but it is likely that they account for a large part of the category of "other covenants" in the table above.