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TCA1997 | Section 473A Relief for fees paid for third level education, etc

Change year: 2010

Section 473A Relief for fees paid for third level education, etc

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Amendments

Section 473A inserted by Finance Act 2001 section 29(1) from 6 April 2001.

(1) In this section-

"academic year", in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment;

"appropriate percentage", in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

"approved college", in relation to a year of assessment, means-

(a) a college or institution of higher education in the State which-

(i) provides courses to which a scheme approved by the Minister under the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, applies, or

(ii) operates in accordance with a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister, and which the Minister approves for the purposes of this section;

(b) any university or similar institution of higher education in a Member State of the European Union (other than the State) which-

(i) is maintained or assisted by recurrent grants from public funds of that or any other Member State of the European Union (including the State), or

(ii) is a duly accredited university or institution of higher education in the Member State in which it is situated;

(c) a college or institution in another Member State of the European Union providing distance education in the State, which-

(i) provides courses to which a scheme approved by the Minister under the Local Authority (Higher Education Grants) Acts, 1968 to 1992, applies, or

(d) any university or similar institution of higher education in any country, other than the State or a Member State of the European Union which-

(i) is maintained or assisted by recurrent grants from public funds of that country, or

(ii) is a duly accredited university or institution of higher education in the country in which it is situated;

"approved course" means-

(a) a full-time or part-time undergraduate course of study provided by a college to which paragraph (a), (b) or (c) of the definition of "approved college" relates which-

(i) is of at least 2 academic years' duration, and

(ii) in the case of a course provided by a college to which paragraph (a)(ii) or (c)(ii) of the definition of "approved college" relates, the Minister, having regard to a code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on such approved course, approves of for the purposes of this section;

(b) a postgraduate course of study leading to a postgraduate award, based on a thesis or on the results of an examination or both, in an approved college-

(i) of not less than one academic year, but not more than 4 academic years, in duration,

(ii) that requires an individual, undertaking the course, to have been conferred with a degree or an equivalent qualification, and

(iii) that, in the case of a course provided by a college to which paragraph (a)(ii) of the definition of "approved college" relates, the Minister, having regard to any code of standards which from time to time may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on such approved course, approves for the purposes of this section;

...¹

"the Minister" means the Minister for Education and Science;

"qualifying fees", in relation to an approved course and an academic year, means the amount of fees chargeable in respect of tuition to be provided in relation to that course in that year which, with the consent of the Minister for Finance, the Minister approves of for the purposes of this section.

Amendments

1 Definition of "dependant" deleted by Finance Act 2007 section 9(1)(d)(i) for 2007 and later tax years.

What colleges and courses qualify for tax relief on fees paid?

(1) This section gives a tax credit to you where you pay qualifying fees to an approved college (for an academic year beginning not earlier than 1 August in the tax year) in respect of an approved course....

to read the full commentary

(2) Subject to this section, where an individual for a year of assessment proves that he or she has ...¹ made a payment in respect of qualifying fees in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, the income tax to be charged on the individual for that year of assessment, other than in accordance with section 16(2), shall be reduced by an amount which is the lesser of-

(a) the amount equal to the appropriate percentage of the aggregate of all such payments proved to be so made, and

(b) the amount which reduces that income tax to nil.

Amendments

1 Deleted by Finance Act 2007 section 9(1)(d)(ii) for 2007 and later tax years.

What amount of relief is available for fees paid to an approved college for approved courses?

(2) If you pay qualifying fees, you are entitled to a tax credit equivalent to the lesser of:...

to read the full commentary

(3) In the case of an individual who is a married person assessed to tax for a year of assessment in accordance with section 1017, any payment in respect of qualifying fees made by the individual's spouse shall, except where section 1023 applies, be deemed to have been made by the individual.

What if we are a married couple who are jointly assessed?

(3) In the case of a married couple who are jointly (section 1017) but not separately (section 1023) assessed, any fees paid by the non-claimant spouse are deemed to have been paid by the claimant spouse.

(4) For the purposes of this section, a payment in respect of qualifying fees shall be regarded as not having been made in so far as any sum in respect of, or by reference to, such fees has been or is to be received, directly or indirectly, by the individual, or, as the case may be, [the person by whom the course is being, or was, undertaken]¹, from any source whatever by means of grant, scholarship or otherwise.

Amendments

1 Substituted by Finance Act 2007 section 9(1)(d)(iii) for 2007 and later tax years.

How does a fee payment that has been subsidised qualfiy for the tax relief on college fees?

(4) Any part of the college fee payment which has been subsidised (for example, by a grant or scholarship) does not qualify for tax relief.

(5)(a) Where the Minister is satisfied that an approved college, within the meaning of paragraph (a)(ii) or (c)(ii) of the definition of "approved college", or an approved course in that college, no longer meets the appropriate code of standards laid down, the Minister may by notice in writing given to the approved college withdraw, with effect from the year of assessment following the year of assessment in which the notice is given, the approval of that college or course, as the case may be, for the purposes of this section.

(b) Where the Minister withdraws the approval of any college or course for the purposes of this section, notice of its withdrawal shall be published as soon as may be in Iris Oifigiúil.

How can a claimant find out if a college or course is no longer approved for tax relief on fees?

(5) If a college or course no longer meets the Department of Education and Science minimum educational standards, the Minister for Education and Science may write to the college withdrawing approval for the college and/or the course....

to read the full commentary

(6) Any claim for relief under this section made by an individual in respect of fees paid to an approved college shall be accompanied by a statement in writing made by the approved college concerned stating each of the following, namely-

(a) that the college is an approved college for the purposes of this section,

(b) the details of the course undertaken ...¹,

(d) the amount of the fees paid in respect of the course.

Amendments

1 Deleted by Finance Act 2007 section 9(1)(d)(iv) for 2007 and later tax years.

What information must I provide in order to obtain relief for fees paid on an educational course?

(6) When claiming the relief, you must enclose a written statement from the qualifying college stating:...

to read the full commentary

(7) Where for the purposes of this section any question arises as to whether-

(a) a college is an approved college, or

(b) a course of study is an approved course,

the Revenue Commissioners may consult with the Minister.

How do Revenue decide if an educational course qualifies for relief?

(7) In deciding whether any course qualifies for relief, the Revenue Commissioners may consult with the Department of Education and Science.

(8) On or before 1 July in each year of assessment, the Minister shall furnish the Revenue Commissioners with full details of-

(a) all colleges and courses in respect of which approval has been granted and not withdrawn for the purposes of this section, and

(b) the amount of the qualifying fees in respect of each such course for the academic year commencing in that year of assessment.

Who provides Revenue with details of approved colleges and courses for educational relief?

(8) On or before 1 July in each tax year, the Department of Education and Science must provide the Revenue Commissioners with a list of approved colleges and courses, and the fees for the academic years for each course that will commence in the forth...

to read the full commentary

(9) Where relief is given under this section to any individual in respect of a payment of qualifying fees, relief shall not be given under any other provision of the Income Tax Acts to that individual in respect of that payment.

Amendments

Subs (9) inserted by Finance Act 2007 section 9(1)(d)(v) for 2007 and later tax years.

Can educational fees relief be claimed in conjunction with any other relief?

(9) No. If relief is given for expenditure on college fees, relief may not be claimed on such expenditure under any other part of the tax code. In other words, relief cannot be claimed twice for the same expenditure.