Dáil Éireann díospóireacht -
Tuesday, 11 Mar 1997

Vol. 476 No. 2

Written Answers. - Tax Reliefs.

Mary Wallace

Ceist:

66 Miss M. Wallace asked the Minister for Finance the tax allowances which are available to a family of a husband, wife and three dependant children with an income of £30,000 and two children in third level education, who do not qualify for maintenance grants; if such a family is entitled to any tax allowances for the cost of the accommodation for the third level students who are 190 miles away from home or for the cost of travel to and from college at a cost of £50 per week and £100 per week for accommodation; the medical or other allowances, if any, which are available to this family; his views on whether families like this are the new poor in spite of an income of £30,000 which is derived from weekend and night work to struggle to pay for education and to make ends meet and in view of the fact that this type of family cannot afford to change their car which is needed for work; and if he will make a statement on the matter. [6767/97]

Minister for Finance (Mr. Quinn)

A family in the circumstances described by the Deputy qualifies for the same tax allowances as other tax-payers, i.e. personal allowances, PAYE allowance, mortgage interest relief, as appropriate. Tax relief is also available in respect of medical insurance and unreimbursed medical expenses in excess of £200 incurred by the taxpayer and his or her dependants, including dependent children.

In addition, a taxpayer who pays tuition fees on behalf of his or her child to an approved college in respect of an approved full-time undergraduate course of at least two academic years duration may claim tax relief at the standard rate on these fees up to a maximum of £2,500 per year. Tax relief is not available in respect of the cost of students' travel and accommodation. Where students are in publicly funded institutions, pursuing full-time undergraduate courses of at least two years duration, they can, of course, avail of the free fees initiative introduced in the 1995 budget. I would also point out that a family with an income of £30,000 will benefit significantly from the tax improvements I introduced in the budget.