rent relief living with in laws

pbody1985

Hi

Quick question me.and my husband had been renting for a few years and claiming rent relief , we moved home last year to save for mortgage , we are paying them rent also , my question is am I still able to claim this releif ???

Thanks

Alan Shore

pbody1985 wrote: »

Hi

Quick question me.and my husband had been renting for a few years and claiming rent relief , we moved home last year to save for mortgage , we are paying them rent also , my question is am I still able to claim this releif ???

Thanks

Yes but then your parents would have to declare the rent as income!


http://www.revenue.ie/en/tax/it/credits/rent-credit.html#section9

pbody1985

Oh ok , if I call them and explain I didnt know I had to unclaim it last year ? Would I be peanalised for something like this ? To be honest I didnt know I had to unclaim it

Alan Shore

Did you pay rent to a different landlord in 2015? If so how much was the rent? Would it cover the rent credit you claimed?

Will you pay rent in 2015 to a different landlord if not then cancel it from 1.1.16.

pbody1985

No we moved back home the end january 2015 , I only noticed this when I put through my health expenses 3 days ago

So I payed no rent last year

bmwguy

Your parents don't have to pay tax on any rent you pay them up to 10k per year. It's the rent a room scheme, once they live in the same house it's all ok.

mansize

bmwguy wrote: »

Your parents don't have to pay tax on any rent you pay them up to 10k per year. It's the rent a room scheme, once they live in the same house it's all ok.

Can the Rent Tax Credit be claimed if the Tenant is living with their parents?
Where Rent relief is being claimed in respect of rent paid by a child to their parent, the parent will not qualify for the Rent-a Room exemption and will be required to declare their Rental income to Revenue at the end of the year. Refer to Leaflet IT 70 - A Revenue Guide to Rental Income for further information on rent-a-room relief.

Nope! Parents don't qualify anymore

pbody1985

So im proberly better off calling them and explaining the situation and that I wasnt aware I had to unclaim the relief which I wasnt

relax carry on

pbody1985 wrote: »

So im proberly better off calling them and explaining the situation and that I wasnt aware I had to unclaim the relief which I wasnt

The tax credit will be removed for 2015 resulting in an underpayment for the year. It shouldn't be huge as the rent tax credit is being phased out by 2017.

pbody1985

Ok cheers I will call them monday so sort it out thanks all for your reply

allthedoyles

pbody1985 wrote: »

Hi

Quick question me.and my husband had been renting for a few years and claiming rent relief , we moved home last year to save for mortgage , we are paying them rent also , my question is am I still able to claim this releif ???

Thanks

you must have been renting on 7th december 2010 to claim this tax credit

pbody1985

We had been renting from 2008 so good on that front , I just didnt unclaim to tax credit last year as I didnt know I had to when I stopped renting so I will call them monday to sort out last year