PPR question

acdublin

I'm required to live in employers house to fulfil my work duties. I have just bought another house that is our only family home (although while employed in current job we will not sleep in the one we've bought). Out stuff is in the house we own and we pay the bills at it.

I know that I'm able to designate this house we own but don't sleep in as our PPR. Under the rules for Capital Gains Tax, there's specific mention of being allowed to call something else your PPR when you are required to live in an employer's residence for the purpose of work. This house is exempt from CGT as it's your PPR. That is not a question.

However, my question is: can the Revenue count something as your PPR and apply certain benefits to you (say CGT exemption) but not others (say Rent-a-Room relief)?

Many thanks, ac

Will you not be able to spend weekends there, your oh spend time there (even without you) etc.

That would clear things up very quickly and mean there would be no issues at all claiming rent a room relief.

Bubbaclaus

You cannot apply the CGT relief provision to a completely separate Income Tax relief. The guidance states " an individual’s sole or main residence is that individual’s home for the greater part of the time and where friends and correspondents would expect to find him/her."

Based on what you described this would not apply to you.

acdublin

Thanks for the reply Bubbaclaus. Revenue makes exception under the CGT guidance (I don't have it to hand but I think it's document 19.07.03) for PPR rules for those who are required by their employers to live in a work property. It specifically states people like prison governors and estate managers who must live on site may designate another property their PPR, contrary to the usual guidance about it being where a friend should expect to find them.
That being the case, can that prison governor/estate manager, rent a room under Rent-a-Room relief? I appreciate that one member of the family could fulfil the requirement by spending a night or two a week in the house. If this fictional governor had three small children, that might not be as easy as it sounds!

Glass fused light

acdublin wrote: »

Thanks for the reply Bubbaclaus. Revenue makes exception under the CGT guidance (I don't have it to hand but I think it's document 19.07.03) for PPR rules for those who are required by their employers to live in a work property. It specifically states people like prison governors and estate managers who must live on site may designate another property their PPR, contrary to the usual guidance about it being where a friend should expect to find them.
That being the case, can that prison governor/estate manager, rent a room under Rent-a-Room relief? I appreciate that one member of the family could fulfil the requirement by spending a night or two a week in the house. If this fictional governor had three small children, that might not be as easy as it sounds!

The PPR rules provide support for the long term housing needs of the owner, it evens the playing field for mobile workers ( a lot of these roles would originally be state employees ) Plus the owner may be caught under BIK for the housing provision.

The principal objective of RAR is to expand the supply of housing by on streaming properties with spare capacity into the housing market.

It allowed the householder to be tax compliant while allowing a stranger into their personal space. And in some cases provides for cheaper easier to access accomadation to the licencee. It facilitates this by excluding the need to file a tax return in order to calculate and pay over the tax and prsi liability, eg 50% of the rent & fair usage of utility bills upfront and 1 bedroom + fair usage of common spaces / floor area in CGT makes letting a room unattractive.
It helps Revenue as it pulls the provider into the tax net and this improves the % of tax compliant in the population. it was happening anyway with zero benefit in tax take, this has an overall impact of normalising the notion of being tax compliant. It was also an attrative cash boost to first time buyers so a PR success for the government.

I am open to correction but from memory under PPR the employee is entitled to rent the house as a landlord for a period of time once they return to the home and live in it.

The RAR rule is to prevent a loophole of landlords from keeping a room in a house and claiming they are living there.