Training Courses - I.T. and Foreign Languages

Introduction

Section 476 Taxes Consolidation Act 1997 provides for relief from income tax for individuals who incur expenditure on certain training courses concerned with aspects of information technology and foreign languages.

Qualifying courses and qualifying course providers

To qualify for the relief the course must be a course of study or training, other than a postgraduate course, which:

• Is confined to such aspects of information technology or, such foreign languages as are approved by the Minister for Enterprise, Trade and Employment with the consent of the Minister for Finance
• Is of less than 2 years duration
• Results in the awarding of a certificate of competence (and 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.

For the purposes of the relief both the qualifying course and the course provider must be approved by FÁS.

Lists of approved courses and approved course providers are available from any tax office or from the Revenue Forms & Leaflets Service at 01 - 878 0100.

Tax relief

Relief at the standard rate of income tax (24% for 1998/99) is available where the net tuition fees for an approved course exceed ₤250. (Relief is not available for any part of the tuition fees which are met directly or indirectly by grant, scholarship or otherwise, e.g. where fees are re-imbursed by an employer.) The relief is subject to an upper limit of ₤1,000 per course.

Relief is not available in respect of one individual for more than one course in one year of assessment. Where the net amount of the fees for an approved course exceeds ₤1,000, relief will be given in respect of the ₤1,000 limit but not on the excess.

The relief is granted in the year of assessment 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.

Individuals eligible for relief

Any individual who is the training participant, paid the fees and received the certificate of competency in respect of the training is eligible for the relief.

In the case of a married couple who are jointly assessed to tax relief is available in respect of qualifying fees paid by either spouse.

Applications for relief

The relief can be claimed either on the individual’s end of year tax return or during the tax year when the certificate of competence has been awarded and the fees have been paid.

The claim for relief should be accompanied by:

• The certificate of competence awarded, suitably dated
  or
• A statement from the approved course provider certifying that the required minimum level of competence was achieved and the date that a certificate of competence in respect of the approved course was awarded.

The claimant should also submit a receipt from the approved course provider containing the following information:

• Name and address of the approved course provider
• Name and address of student
• Title of the approved course and its duration
• Amount of tuition fee paid
• Name and address of individual who paid the fee, if different from above.

Details of any payment made towards the fees, received or to be received, must accompany the claim. These include grants, scholarships, and other payments by third parties e.g. employers, in respect of relevant fees.