I propose to take Questions Nos. 19, 54, 97 and 98 together.
The statistical data sought by Deputies McDowell, O'Donnell and Martin is as follows to the extent that it is available from the Revenue Commissioners.The information is based on a 1 per cent sample of taxpayers on file.
Covenants from parents and grand-parents to children make up 60 per cent of the total of 37,000 covenants and nearly 53 per cent of the total cost of covenants of £37 million in 1994/95. Covenants from other relatives make up 22 per cent of the total number of covenants and 34 per cent of the total amount covenanted; other covenants make up 18 per cent of the total number of covenants and 13 per cent of the total amount covenanted; covenants to persons in third level education, whether from parents or from other covenantors, make up 69 per cent of the total number of covenants and 64 per cent of the total amount covenanted.
In the absence of the changes announced in the budget the cost of tax relief on covenants by individuals for 1995-96 would be £39 million of which £25 million relates to third level covenants.
The savings estimated to arise in a full year from the changes announced in the budget for 1995-96 in relation to minor children and the extension of the 5 per cent limit will be approximately £10 million and the total savings when tax relief is further abolished in 1996 will be £34 million. It is tentatively estimated that after all the changes the cost to the Exchequer of retaining relief for the aged and incapacitated will be some £5 million in a full year.
The figures referred to above do not include covenants for maintenance and covenants by companies.