Jane pays tuition fees for a full-time course commencing in 2017 which costs €7,000. The course runs for nine months and ends in 2018. She pays one fee instalment of €3,500 in September 2017, and the second instalment of €3,500 in January 2018.
Jane has two options:
Option one
She could claim relief on €7,000 for the tax year 2017.
She must subtract the disregard amount of €3,000 from fees amount of €7,000. She is left with €4,000. She is allowed tax relief of 20%, which is €800.
Option two
She could claim relief on €3,500 in 2017 and €3,500 in 2018.
For 2017, she must subtract the disregard amount of €3,000 from fees amount €3,500. She is left with €500. She is allowed tax relief of 20%, which is €100.
For 2018, she must subtract the disregard amount of €3,000 from fees amount €3,500. She is left with €500. She is allowed tax relief of 20%, which is €100.
Her total relief for Option two is €200.
Jane benefits more by claiming relief using Option one.