Section 6 of the Finance Act, 1995 provides for tax relief on tuition fees paid by students who are attending private third level colleges. Such students or their parents, as appropriate, can avail of tax relief, at the standard rate, on tuition fees paid in respect of full-time undergraduate courses of at least two years duration in such colleges, provided that both the college and the course satisfy the prescribed codes of standards and are approved by the Minister for Education and Science. Section 15 of the Finance Act, 1996, as amended by the Finance Act, 1997, provides for tax relief, at the standard rate, for tuition fees paid in respect of approved part-time undergraduate courses which are of a minimum duration of two years and are followed in colleges approved for the higher education grants scheme or in colleges which satisfy the prescribed codes of standards.
The codes of standards for the approval of colleges and courses were set down in May 1996 and colleges are required to apply to the national council for educational awards for confirmation that the codes of standards are satisfied in any particular case. Both tax relief provisions came into effect from the 1996-97 tax year and the maximum level of qualifying fees is £2,500. This figure was recommended by the working group appointed by the then Minister for Education to advise on the implementation of the tax relief provisions for private colleges. This maximum figure is sufficiently high to meet the full fees of the vast majority of approved courses in private colleges. However, I will keep this issue under review.
Tax relief is not available on fees paid for courses abroad and I have no proposal to extend these provisions to include courses pursued in the United Kingdom. For the Euroair flight training school in Waterford to have its commercial flight training course considered eligible for tax relief, the college must apply to the NCEA for evaluation against the prescribed code of standards.
