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Rent Relief

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  • 01-11-2006 11:00pm
    #1
    irishproduce
    Registered Users Posts: 2,818 ✭✭✭


    Sorry if this has already been brought up.
    My friend is going to claim rent relief paid to his mother.

    Correct me if im wrong, he can claim even though the rent was paid to his mother and his mother will not be affected provided he has not paid more the €7k odd??


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    #2
    shoegirl
    Registered Users Posts: 2,018 ✭✭✭shoegirl


    irishproduce wrote:
    Sorry if this has already been brought up.
    My friend is going to claim rent relief paid to his mother.

    Correct me if im wrong, he can claim even though the rent was paid to his mother and his mother will not be affected provided he has not paid more the €7k odd??

    His mother would have to declare it as income under the rent a room scheme on her end of year tax return. If not, she will be liable for tax at the marginal rate (42%).

    Both your friend and his mother would have to give their addresses and PPS numbers.

    However I think the revenue could consider this to be fraudulent as it would not be normal to directly charge rent to a family member and it be construed as a deliberate attempt to evade tax. Certainly if he has previously been living at that address he probably would be making himself liable to fraud, which is something you don't want to do.


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    #3
    irishproduce
    Registered Users Posts: 2,818 ✭✭✭irishproduce


    Hello shoegirl, he is still living there and paying his mother €200 per month.
    He is certainly not making a fraudulant claim, he is paying her rent every monthand he is looking to get credits/ relief for this like evryone else.


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    #4
    mckers
    Closed Accounts Posts: 21 ✭mckers


    To my knowledge, there is no restriction on claiming the tax credit for renting a room in a parents room so long as there is a legitimate rent being paid. As noted by shoegirl, your mates mother must submit a tax return to declare the rent received under the rent a room relief scheme. The current limit is €7,620. Declaration of this income has only been required since 2004 I believe. I can't remember when the rent a room relief scheme came into play, but think it might have been 2001.

    Your mate should submit a Form Rent 1 to Revenue. He can claim this credit going back 4 years.


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    #5
    irishproduce
    Registered Users Posts: 2,818 ✭✭✭irishproduce


    Great thanks a million


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