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Rent a Room relief + Airbnb

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  • 28-12-2020 1:33pm
    #1
    Lavanniaj
    Registered Users Posts: 3 ✭


    Hi, we are planning to buy a 3 bedroom apartment to live in and will rent out one of the rooms under the rent a room scheme. Would anyone know if we could do the occasional (<90 days) airbnb of the 3rd room without affecting the rent a room relief or the CGT PPR relief if we sell in future? Thank you in advance!
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    #2
    Will Yam
    Registered Users Posts: 671 ✭✭✭Will Yam


    Lavanniaj wrote: »
    Hi, we are planning to buy a 3 bedroom apartment to live in and will rent out one of the rooms under the rent a room scheme. Would anyone know if we could do the occasional (<90 days) airbnb of the 3rd room without affecting the rent a room relief or the CGT PPR relief if we sell in future? Thank you in advance!

    I stand to be corrected on this, but

    The income from rent a room will not be affected if you Airbnb the 3rd room.

    However, airbnbing the 3rd room will impact on your ppr relief as part of your property will be a commercial enterprise.


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    #3
    Maximus47
    Registered Users Posts: 15 ✭Maximus47


    Air B and B is considered as Trading and not rental so will not get the rent a room relief and will impact on PPR.


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    #4
    Will Yam
    Registered Users Posts: 671 ✭✭✭Will Yam


    Maximus47 wrote: »
    Air B and B is considered as Trading and not rental so will not get the rent a room relief and will impact on PPR.

    But if they let out one room on rent a room basis, and the other as air bnb surely the room let out on rent a room basis should qualify for that relief?


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    #5
    Maximus47
    Registered Users Posts: 15 ✭Maximus47


    Yes agree 100%. Only the Air B and B caught as trading. Good idea to value furniture etc for capital allowances and also
    portion of light and heat etc.


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    #6
    Lavanniaj
    Registered Users Posts: 3 ✭Lavanniaj


    Thanks a million both! I had thought though, that if the airbnb was less than 90days and we are living in the property, it would not be considered trading or a change in use?


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    #7
    Will Yam
    Registered Users Posts: 671 ✭✭✭Will Yam


    Lavanniaj wrote: »
    Thanks a million both! I had thought though, that if the airbnb was less than 90days and we are living in the property, it would not be considered trading or a change in use?

    If its not rent a room, its trading.

    The 90 day restriction is not, to best of my knowledge a tax issue. It may be illegal to airbnb for more than 90 days but that wouldn’t matter to Revenue.

    And, change in use is also, I think irrelevant where tax is concerned.

    Revenue will look at source of income

    Rent a room - no tax
    Airbnb - trading
    Renting out a property - rental income (different rules to trading).


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    #8
    Maximus47
    Registered Users Posts: 15 ✭Maximus47


    In agreement with Will Yam


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