Claiming Tax back on rent paid

holmsey

I've been living at home with my parents for the last few years while I was working and paying about 300 euro a month rent. I've recently moved out and am renting a room in an apartment, I've been told that I can now claim tax relief on the rent I pay in my new accommodation.

A friend also told me that I can probably claim back tax for the rent I paid at home before I moved out.

Does anyone know if this is true? And also whether it will mean my parents will be hit with a tax bill for the income they were recieving from me if I do claim tax back?

Also the owner of the apartment that I'm currently living in claims first time buyers mortgage interest relief, will this be effected if they are making an income from renting a room?

Thanks.

FeelingTired

Bumpety Bump.......I would be interested in the answer to this if anyone knows

Wishbone Ash

Some info here: http://www.citizensinformation.ie/categories/housing/renting-a-home/rents-and-tenancies/tax_relief_for_tenants

Moonbeam

http://www.revenue.ie/index.htm?/leaflets/taxguide_chapt2.htm

The laws have changed with regards to family members claiming tax relief for rent but you should be able to back claim as it is only recent.

Yorky

Does anyone have a definitive answer on this i.e. can parents receive rent under the RaRS and can the child receive rent relief on rent paid?

Yorky

Answered definitively here http://www.revenue.ie/index.htm?/revguide/renttaxcredit.htm

The_Conductor

OP- you can claim rent-relief on your new accommodation immediately (its only worth about 300 per annum). Re: a retrospective claim while at home with your parents- it would have to be proven that this was actually rent (i.e. was it comparable to what other people would have paid for renting a room in the area etc), and not simply a contribution by you towards the household bills. 300 a month would seem to be more a contribution towards bills than rent (which would tend to be a good deal higher). If you are in agreement (with your parents) that it was indeed "rent" and not a contibution towards the household bills- then they would have to claim the entirety of the income via an annual tax return and pay income tax on the income. Previously they might have been allowed to use the "rent-a-room" scheme to shelter up to 7620 Euro of rental income- however this loophole is now closed and the whole sum would be taxable (note: even if they were using the "rent-a-room" scheme, they would still have had to have been submitting annual tax returns detailing the income, even if no tax was due on it).

I would be very careful about trying to claim rental relief for when you were staying with your parents- its entirely possible that it may be decided that you weren't entitled to it, and even if you were- you could seriously land your parents in the hot water.

S.