Richard Boyd Barrett
Question:355. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of tax that is foregone annually due to tax breaks for private schooling; and if he will make a statement on the matter. [35013/18]
View answerTuesday, 24 July 2018
Questions (355, 356)
Richard Boyd Barrett
Question:356. Deputy Richard Boyd Barrett asked the Minister for Finance the amount which would be saved if tax breaks for private schooling were allowed at only the 20% marginal rate; and if he will make a statement on the matter. [35014/18]
View answerWritten answers
I propose to take Questions Nos. 355 and 356 together.
The schemes relevant to the Deputies' questions are the Special Assignee Relief Programme (SARP) (employees who qualify for SARP may receive tax relief on certain costs associated with the education of their children in the State) and the Charitable Donations to Approved Bodies scheme.
It should be noted that, under SARP, only school fees of up to €5,000 per annum for each child of the relevant employee or for each child of his or her spouse or civil partner are eligible for tax relief. I am advised by Revenue that the following table sets out the total value claimed annually, and the number of eligible claimants, in respect of tuition fees for 2012, 2013, 2014, 2015 and 2016, the latest year for which data is available.
|
Year |
Total Tuition Claimed €* |
|
2012 |
34,000 |
|
2013 |
169,000 |
|
2014 |
571,000 |
|
2015 |
477,000 |
|
2016 |
600,000 |
*these figures relate to the total amount of tuition fees in respect of which claims were made and not the amount of tuition fees that qualified for SARP.
It should be noted that these figures are the total amount of tuition fees in respect of which claims were made and not the amount of tuition fees that qualified for SARP. The amount of tuition fees which qualified for SARP relief is not readily available and, as I advised the deputy in my reply to questions 184 and 185 on 26 July 2017, there are no statistics available to estimate a net cost to the Exchequer or to estimate a saving associated with only allowing relief at the 20% marginal rate, as described by the Deputy. However, I am advised by Revenue that if an assumption is made that the total amount of private school fees relieved under SARP for 2016 amounted to approximately €0.6m, and this total figure was relieved under the 40% marginal tax rate, this would have effectively resulted in €0.24m being refunded. If these amounts were relieved at the 20% standard rate of tax it would result in savings of approximately €0.12m for the Exchequer for 2016.
The Charitable Donation Scheme allows tax relief on qualifying donations made to eligible charities and approved bodies which include (but are not limited to) primary and secondary schools. I am informed by Revenue that it is not possible to separately identify the donations and refunds attributable to such schools.