Written Answers. - Third Level Fees.
Richard Bruton
Ceist:
141
Mr. R. Bruton
asked the
Minister for Finance
if he will give full details of tax relief provision that apply to third level study, distinguishing the thresholds for different types of courses at undergraduate and postgraduate levels.
[20859/00]
Set out below is the information sought by the Deputy. The information was provided by the Revenue Commissioners. Tax relief is available for tuition fees paid for: full-time approved undergraduate courses of at least two years duration in private third level colleges in the State; full-time qualifying undergraduate courses of at least two years duration in publicly funded universities or similar third level colleges in any EU member state. Courses in medicine, veterinary medicine, dentistry or teacher training are excluded from the relief; part-time approved undergraduate courses of at least two years duration in publicly funded third level institutions and private colleges in the State; and part-time approved undergraduate courses operated by colleges in any EU member state providing distance education in the State.
The colleges and courses within the State are approved by the Minister for Education and Science.
Tuition fees must be paid: by an individual on his/her own behalf or on behalf of a spouse, child or person for whom the individual is the legal guardian, to an approved college within the State or to a qualifying college in another EU member state for an approved full-time/part-time undergraduate course of at least two years duration.
For the tax years 1996/97 to 1999/2000 inclusive, relief for part-time courses is confined to tuition fees paid by an individual on his/her own behalf or on behalf of a spouse. For the tax year 2000/2001 onwards the relief is extended to include tuition fees for an individual's child or a person for whom the individual is the legal guardian.
The relief for part-time courses is confined to students who have not been conferred with a certificate, diploma or degree in respect of an undergraduate course of not less than two years duration, or have already been conferred with a certificate or diploma in respect of an undergraduate course of not less than two years duration and are pursuing an approved course as part of the qualification held.
An unrelated course does not qualify for relief.
Courses which are normally of not less than two years duration but which, because of exemptions following conferring of a related certificate or diploma, may be completed in less than two years, are also eligible for relief.
The amount of the qualifying fees allowable for full-time and part-time courses for an academic year beginning on 1 August in each tax year is determined by the Minister for Education and Science with the consent of the Minister for Finance. From the tax year 1996-97 to date the maximum level of fees on which relief is allowable is £2,500. Relief is granted at the standard rate of tax.
Tax relief is available for the tax year 2000/2001 onwards for tuition fees paid for full-time and part-time approved postgraduate courses in private colleges and publicly funded colleges in the State and full-time and part-time postgraduate courses in a university or publicly funded col lege in another EU Member State, including such colleges that provide distance education.
Colleges and courses within the State are approved by the Minister for Education and Science. Courses must be of at least one academic year, but not more than four academic years in duration and must lead to a postgraduate award based on either a thesis or an examination. The person taking the course must already have a primary degree or an equivalent qualification.
Tuition fees paid by the individual on his/her own behalf or on behalf of a spouse, child or person for whom the individual is the legal guardian qualify for relief.
The amount of the qualifying fees allowable for full-time and part-time courses for an academic year beginning on 1 August in each tax year is determined by the Minister for Education and Science with the consent of the Minister of Finance.
I understand that the Minister for Education and Science is in the process of compiling such a list of colleges and courses which will be available shortly. I also understand that the Minister for Education and Science will be writing to me shortly about the maximum level of fees he proposes will qualify for tax relief.
Tax relief is available for the 1997-98 tax year onwards for fees paid for approved training courses in the areas of information technology and foreign languages.
Relief is available for one course per individual in a tax year. To qualify for the relief the course must: be an information technology or foreign language course, other than a postgraduate course. The course and course providers are approved by FÁS, based on codes of standards agreed by FÁS and the Minister for Enterprise, Trade and Employment with the consent of the Minister for Finance; be of less than two years duration; and result in the awarding of a certificate of competence, not just a certificate of attendance.
A foreign language is defined as a language other than an official language of the State. Courses on either the Irish or English language do not qualify. Foreign languages includes Danish, Dutch, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish.
For the tax years 1997-98 to 1999-2000, inclusive the relief is available in respect of tuition fees, paid by the individual on his/her own behalf or on behalf of a spouse. For the tax year 2000/2001 onwards the relief is extended to an individual's child or a person for whom the individual is the legal guardian.
The relief is granted in the tax year in which the certificate of competence is issued. The legislation came into effect on 31 March 1998. Relief may be due for fees paid earlier than 31 March 1998 if the course is an approved course and a certificate of competence has been issued to the participant after 31 March 1998.
Tax relief is available at the standard rate of income tax where the net tuition fees for an approved course is more than £250. Relief is not available where fees are less than £250. The maximum relief is £1,000 per course. Relief is not available for any part of the tuition fees which are met directly or indirectly by grants, scholarships, an employer or otherwise or administration or examination fees.
Question No. 142 taken with Question 139.
