Rent-a-room scheme while travelling

Kerryman123

Hi,

I bought a house (4 bed) 18 months ago. As I was a first time buyer at the time I didn't pay any stamp duty.

However, here lies my dilemma.

I would like to rent 2 rooms in my house under the rent a room scheme and head off travelling for 6-9 months.

My query is will my house still be considered my primary residence i.e. do I still qualify for the rent-a-room scheme? Due to clawback of stamp duty I do not want to rent the full house.

If I rent a room under the rent-a-room scheme and leave the country for 6-9 months am I eligible to qualify for the rent-a-room scheme. When I am out of the country I plan on moving around and will not be taking up any permanent residency.

All input is welcomed - Thanks in advance.

The_Conductor

Under the rent-a-room scheme the house has to be your "place of primary residence". Technically you could argue that it is still your primary abode, and you are still tax resident in the country- so I don't think you have a problem.

Make sure that you get two really trustworthy room-mates to take care of your house for you!

Shane

Kerryman123

smccarrick wrote:

Under the rent-a-room scheme the house has to be your "place of primary residence". Technically you could argue that it is still your primary abode, and you are still tax resident in the country- so I don't think you have a problem.

I agree - I should be ok regarding rent-a-room scheme, but I would like to get people's views.

smccarrick wrote:

Make sure that you get two really trustworthy room-mates to take care of your house for you!

Yeah getting good tentants is a definite. I plan on renting the 2 rooms in the new year and head off some time around June so I should know the tenants quite well by the time I head off.

ButtermilkJack

I don't think this is the case unfortunately. I brought up the same subject a few months back and the general feeling was that this could not be done. I'll try to find the thread again and post back soon.

blue banana

Ring the revenue commissioners and ask them.

Kerryman123

blue banana wrote:

Ring the revenue commissioners and ask them.

I spoke to the revenue and here's how I got on:

When I asked whether I could go travelling for 6-9 months while renting out two rooms I was told "no, the house wouldn't be considered my primary residence".

However when I explained that I would be taking essentially an extended holiday i.e. travelling about and not taking up any residency in any one place for more that a few weeks and wouldn't be working. I was told "well then if its an extended holiday then you should be ok"

Not exactly the most conclusive answer but a positive answer all the same!

Any views or thoughts on this?

Victor

I think you would certainly have to keep you own bedroom (OK seeing as its a 4-bed). What about travelling back to Ireland during your sojourn?

Kerryman123

Victor wrote:

I think you would certainly have to keep you own bedroom (OK seeing as its a 4-bed). What about travelling back to Ireland during your sojourn?

Yeah will definitely be keeping my own room (well officially anyway!). As I plan travelling mostly in Australia and other southern hemisphere countries it wouldn't really be feasible to travel back to Ireland during my trip.

Thanks for the tip all the same

Does anyone know how I can definetely get an answer on this i.e. when I called the revenue the person who took my call said "I should be ok". Is there anyway of getting official confirmation about this just in case Mr Taxman ever decides to 'come after me'

jimmycrackcorm

If you were making plenty of money abroad and not paying tax then the revenue would be very quick to state that your primary residence was here.

Kerryman123

jimmycrackcorm wrote:

If you were making plenty of money abroad and not paying tax then the revenue would be very quick to state that your primary residence was here.

Exactly... good point

jdivision

To the best of my knowledge, under the rent a room scheme you can officially only rent one room in the house even if the combined rent of renting the two rooms is below the threshold. I think you're fine in terms of going away for a while, it's still your primary residence

Kerryman123

jdivision wrote:

To the best of my knowledge, under the rent a room scheme you can officially only rent one room in the house even if the combined rent of renting the two rooms is below the threshold. I think you're fine in terms of going away for a while, it's still your primary residence

Oh... didn't come across that caveat while researching the matter... I will contact the revenue and see what the official line is.

Thanks for pointing that out!