Owner Occupier Relief

Chipboard

We are considering purchasing a house in an estate which benefits from owner occupier relief but I see from the Revenue leaflet on owner occuper relief that you can't claim it if the house or any part of it is used for anything other than as a dwelling e.g. for running a business. My wife has an internet business so this disqualifies us.

I'd appreciate if anyone could enlighten me to the purpose of this restriction. Isn't it a bit pointless given that tax incentives are designed to enhance the area but this is preventing my wife from bringing money into the area. If we don't buy the house because of this then it will have stopped two additional salaries coming to the town. Alternatively if we do purchase the house and my wife can't run her business she will probably return to the workplace thus depriving someone else of a job.

I'd appreciate any feedback.

derand

Left of field response....

Be careful declaring your family home as a business address - this merely exposes a portion of the property to CGT in the event that you ever trade up.

The potential expsoure can outweight the short-term saving by allocating home utilities to the business. You can have home broadband, etc., etc. without declaring your home as a business address.

Unless I am mistaken I don't think this issue is a blocker to doing what you want to do.

Derek

dbran

+1 to the above

It would only be a problem if say you were using a part of the house as a doctors surgery or a motor garage, shop, clinic etc.

Kind Regards

dbran

Chipboard

I rang Revenue about this and they said that we're disqualified because according to the regulations the property can only be used as a dwelling, any business use disqualifies us.

This effectively means that if you live in a new house anywhere in a tax incentive area you should curb your entrepreneurial spirit and instead sign on the dole!

dbran

Hi

Is it a significant business or just a small hobby sideline type business?

Kind Regards

dbran