Dáil Éireann díospóireacht -
Wednesday, 8 Nov 2000

Vol. 525 No. 3

Written Answers. - Tax Reliefs.

Noel Ahern

Ceist:

206 Mr. N. Ahern asked the Minister for Finance the taxation allowance which is available to people doing a part-time degree or other educational courses; if he will greatly increase and expand the tax allowances available, as part-time students working have made a commitment to the economy and will use their skills to the advantage of society and the economy; and if he will make a statement in relation to the need for greater encouragement and recognition of them. [25246/00]

Minister for Finance (Mr. McCreevy)

As the Deputy may be aware, there are a number of tax reliefs for part-time education courses.

Section 475 of the Taxes Consolidation Act, 1997, provides relief from income tax at the standard rate of tax for tuition fees paid in respect of approved part-time third level courses in approved colleges. The relief applies to part-time undergraduate courses of a minimum duration of two years in publicly funded third level institutions and in private colleges. The relief also applies to a college or institution of another member state of the EU providing distance education in the State.

Publicly funded institutions must have been approved by the Minister for Education and Science for the higher education grant scheme. In relation to private third level colleges, they must operate in accordance with codes of standards laid down by the Minister for Education and Science with the consent of the Minister for Finance.

Section 475A of the Taxes Consolidation Act, 1997, provides tax relief at the standard rate of tax for postgraduate tuition fees in publicly funded colleges here and in the EU as well as in private colleges in this country. The relief is available to full-time and part-time postgraduate students and includes distance education courses offered by publicly funded colleges in other member states of the EU.

Approved courses must be of at least one year's duration and cannot exceed four years and they must lead to a postgraduate qualification award based on either a thesis or an examination. Individuals taking the courses must already have a primary degree or an equivalent qualification.

In relation to publicly funded institutions in the State, the institutions must have been approved by the Minister for Education and Science for the higher education grant scheme. In relation to private third level colleges in the State, they must operate in accordance with codes of standards laid down by the Minister for Education and Science with the consent of the Minister for Finance.

The maximum amount of fees that can be claimed under the above reliefs is £2,500 per annum. The level of fees is determined by the Minister for Education and Science with the consent of the Minister for Finance.

Section 476 of the Taxes Consolidation Act, 1997, provides for relief from the standard rate of income tax for individuals who incur expenditure on training courses concerned with certain aspects of information technology and foreign languages, which includes Danish, Dutch, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish.

The courses must be of less than two years duration. Both the courses and course providers are approved for the purposes of the relief 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. The qualifying fees which are set out in the legislation must not be less than £250 and not exceed £1,000.

I have noted the Deputy's views in this regard and will bear them in mind.