Dáil Éireann Debate, Tuesday - 15 February 2022
305. Deputy Charles Flanagan asked the Minister for Finance if he will consider abolishing the current disregard amount in place in respect of tax relief on college fees for PAYE parents who are not eligible for assistance through the SUSI grant scheme; and if he will make a statement on the matter. [8410/22]
View answerSection 473A of the Taxes Consolidation Act 1997 provides for income tax relief in respect of qualifying tuition fees paid by an individual for a third level education course (including a postgraduate course), subject to the conditions set out in that section. The relief is granted at the standard rate of income tax (currently 20%), where an individual pays “qualifying fees” for an approved course whether on his or her own behalf or on behalf of another individual. Claimants who pay tuition fees in instalments can claim tax relief either in the tax year when the academic year commenced or the tax year when the instalment is paid.
“Qualifying fees” mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”. No other fees e.g. administration fees, examination fees, capitation fees, qualify for tax relief. Tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means are deducted in arriving at the net qualifying fees. A claim for relief may be made in respect of a number of students. It should be noted that any claim for relief must be submitted within the 4-year time limit which applies to claiming tax reliefs.
The maximum amount of fees that can qualify for the relief is €7,000 per course per academic year. In accordance with the governing legislation, an amount must be disregarded, whether the claim is in respect of one or more students. The disregarded amount per claim is currently €3,000 in the case of a full-time course(s) and €1,500 for a part time course(s). One disregard amount applies to each claim.
Issues relating to the direct cost of further and higher education are ones primarily for the Minister for Further and Higher Education in the first instance and I am aware that this is an area of particular focus for Minister Harris at present.
However, in relation to the specific issue raised in the Deputy's question, I do not have any plans currently in relation to the removal of the disregard mentioned.
