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Query re rent a room scheme

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  • 07-01-2016 11:07am
    #1
    Alkers
    Registered Users Posts: 6,834 ✭✭✭


    I just have a query in relation to the meaning of the following paragraph of the rent a room scheme (downloaded from http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf?download=true)

    2. Who can avail of the relief?
    The relief applies only to individuals. It does not apply to companies or partnerships.
    However, it can apply where sums arise to more than one individual, for example, a
    husband and wife, where there is no partnership.

    If I buy a house with my girlfriend, how would we go about availing of the scheme if the house is owned by the pair of us? Would we each be able to avail of a max of €12,000 if we were to rent two rooms or would only one of us be able to avail of the scheme?

    THanks


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    #2
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    Simona1986 wrote: »
    I just have a query in relation to the meaning of the following paragraph of the rent a room scheme (downloaded from http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf?download=true)

    2. Who can avail of the relief?
    The relief applies only to individuals. It does not apply to companies or partnerships.
    However, it can apply where sums arise to more than one individual, for example, a
    husband and wife, where there is no partnership.

    If I buy a house with my girlfriend, how would we go about availing of the scheme if the house is owned by the pair of us? Would we each be able to avail of a max of €12,000 if we were to rent two rooms or would only one of us be able to avail of the scheme?

    THanks

    Its no problem that you're not married, but it will be €12,000 between the two of you, as my understanding is that the scheme only applies to your principle primary residence (in this case thats the same house). My understanding of the above is that they've given a married couple as an example but the that does not preclude groups of friends, cohabiting couples etc. The aim here is to prevent companies or other legal entities seeking to earn income tax free under this scheme.

    I have friends (a couple, unmarried) who rent out their 2 spare rooms to students during the college year (9months) and they're fine with the €12k limit.


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