Dáil Éireann Debate, Tuesday - 9 May 2023
224. Deputy Jim O'Callaghan asked the Minister for Finance whether students who attend university in the UK can write off the cost of their student accommodation against tax; whether any consideration is being given to providing such relief; and if he will make a statement on the matter. [21696/23]
View answerThere are currently no tax reliefs specifically targeting UK-based student accommodation costs for Irish taxpayers attending university in the UK. I have no plans, at present, in this regard.
In relation to the recently introduced Rent Tax Credit, which is provided for in section 473B of the Taxes Consolidation Act 1997 (TCA), the purpose behind this temporary measure is to assist as part of the overall response to the accommodation shortage in the private rented residential sector in Ireland. More specifically, the aim is to provide some financial assistance to renters in that particular sector who may face high rental costs. 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 in the UK nor their parents are currently entitled to the Rent Tax Credit in respect of rent which they have paid for student 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.
Further details in relation to the Rent Tax Credit can be found on Revenue’s website at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-11A.pdf.
It should also be noted that section 473A of the TCA provides for income tax relief in respect of qualifying fees paid by an individual for one or more approved third level education courses, subject to the conditions. Qualifying fees in this context mean tuition fees, but do not include administration fees or examination fees, student centre or union levies, or accommodation costs.
Approved courses may include full-time and part-time undergraduate and postgraduate courses provided by certain approved institutions of higher education in European Union (EU) Member States or in the United Kingdom (UK). Lists of approved higher education institutions and courses are published on the Revenue website each year at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/approved-colleges-and-courses.aspx
In addition to the above, there are also exemptions from tax that apply to payments received by students including, for example, maintenance grant payments made to students in higher education under Student Universal Support Ireland (SUSI). Also, income arising from a scholarship is exempt from income tax, USC and PRSI, where the conditions for relief in section 193 TCA are met. Further details in relation to the scholarship exemption can be found on Revenue’s website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-26.pdf.
