Shared ownership help

tumbleina

Hi
I have a shared ownership house. I understand from the terms that you have to live in the house etc. My circumstances have changed since I got the house and I want to move to the UK. I want to rent the house. I know I am not supposed to. Has anyone done this ? How do you deal with the submission of earnings paperwork? I rang the council and asked. Their response was people do it but they are not supposed to.... and that's all I could get out of them. Would love any thoughts on this. Selling is not an option obviously at the moment.

Tinkerbell4484

My house is shared ownership,my local council would not let us rent ours out a few years ago when we asked

ted1

tumbleina wrote: »

Hi
I have a shared ownership house. I understand from the terms that you have to live in the house etc. My circumstances have changed since I got the house and I want to move to the UK. I want to rent the house. I know I am not supposed to. Has anyone done this ? How do you deal with the submission of earnings paperwork? I rang the council and asked. Their response was people do it but they are not supposed to.... and that's all I could get out of them. Would love any thoughts on this. Selling is not an option obviously at the moment.

Just rent it out as normal. DCC know I do and don't care.

Also with regards tax etc you can claim the rent you pay to the council as an expense, you'll never have a tax liability doing this

The_Conductor

ted1 wrote: »

Just rent it out as normal. DCC know I do and don't care.

Also with regards tax etc you can claim the rent you pay to the council as an expense, you'll never have a tax liability doing this

Get proper advice on this- you cannot normally claim rent paid as an allowable expense.

ted1

The_Conductor wrote: »

Get proper advice on this- you cannot normally claim rent paid as an allowable expense.

Yes you can, I had an audit last month and went trough it with revenue. They weren't happy I was claiming it but there was nothing to stop me and rent is listed as a legitimate expense. ( the girl doing the audit went to her seniors to clarify)


Here's an extract from revenue.ie

What Expenditure Can Be Deducted?
Broadly speaking, deductible expenditure is allowable only to the extent that it:
would be allowable if the receipt of rent were treated as the carrying on of a trade during the currency of the lease or during the period in which you were entitled to the rent,
is not of a capital nature, and
is incurred by you.
The following are examples of expenditure you may deduct when calculating your rental income or losses. As advised in the introduction, a separate calculation must be made for each letting.
rents payable by the landlord in respect of the property, e.g. ground rent,

The_Conductor

The definition you have just quoted, would normally precluded shared ownership rent as a deductible expense.

I am aware of 2 current cases in dispute- both under audit- where this is a factor.

ted1

The_Conductor wrote: »

The definition you have just quoted, would normally precluded shared ownership rent as a deductible expense.

I am aware of 2 current cases in dispute- both under audit- where this is a factor.

This ,

rents payable by the landlord in respect of the property, e.g. ground rent

This is what I used and they reluctantly accepted it

And this,

Broadly speaking, deductible expenditure is allowable only to the extent that it:
would be allowable if the receipt of rent were treated as the carrying on of a trade during the currency of the lease or during the period in which you were entitled to the rent,
is not of a capital nature, and


Its a non capital expense so allowed.

The_Conductor

The issue may be that they don't have a consistent way of dealing with it. Regardless of how you look at it, it's not ground rent, and the response from Kildare Co. Co. in both cases, is that it is capital in nature.

The Revenue Commissioners need to be consistent in how they deal with this, and their current morass of self employed expenses. They are not, at the moment.

ted1

The_Conductor wrote: »

The issue may be that they don't have a consistent way of dealing with it. Regardless of how you look at it, it's not ground rent, and the response from Kildare Co. Co. in both cases, is that it is capital in nature.

The Revenue Commissioners need to be consistent in how they deal with this, and their current morass of self employed expenses. They are not, at the moment.

With all due respect to Kildare CoCo they are not revenue and don't need to be involved. All they need is to give you a statement with breakdown of rent, insurance, mortgage and interest.
Why would you even consider talking to them about a revenue issue? Madness..

If you look at the quote from revenue it uses ground rent as an example , it does not limit the rent to ground rent. They reluctantly confirmed that my logic is correct

cormie

Sorry guys, just to query this, is this a restriction on shared ownership say if I was to go in to buy a property with 1 or two friends, or is this the affordable housing or council part owned houses?

Tinkerbell4484

It's part owned between you and your local county council, like you own 60%(or whatever share) and you rent the other 40% off them

tumbleina

Thanks for the replies, but I wasn't worried about claiming for tax.

What I wanted to know when the CC ask for your income details what do you tell them. Can you ignore the earnings request and just pay the maximum mortgage amount.

I did take advice and as I have no arrears, and never missed a payment and have had the house for 10 years, I was told that as long as the mortgage is paid they can't do much.

I wondered if anyone had any experience.

ted1

I've never being asked by Dublin City Council. nor would i tell them.