Michael Ring
Ceist:571 Mr. Ring asked the Minister for Education and Science if lease repayments can be offset on means when calculating net income for third level grant purposes, for a self-employed seasonal contractor. [16042/02]
Written Answers. - Higher Education Grants.
The assessment of means under my Department's third level schemes of student support is based on gross income from all sources with certain social welfare and health board payments being exempt. When assessing income from self-employment/farming the amount assessed is the adjusted profit/loss for income tax purposes from all self-employment activities, both Irish and foreign, whether or not they are exempted or relieved from Irish income tax. Capital allowances and other capital related costs, such as interest on borrowings used to purchase fixed assets, are not deductible from the adjusted profit in computing reckonable income for grant purposes.
Finance lease arrangements are an alternative method of funding the acquisition of fixed assets. The lease payments comprise two elements: (a) repayment of the "purchase outright" cost of the asset; and (b) finance charges levied by the lease company. As these two elements are directly related to capital additions, the expenditure is not deductible for higher education grants purposes.