Work in Dublin - principle primary residence

vmac76

Hi,

I live with my family in galway but I am considering taking a job in Dublin. We own a house in Dublin and I am considering living there during the week (Mon-thur). My question is, can I rent the other rooms under the rent a room scheme? Currently the house is rented and we pay tax every year on this. We also own our house in Galway.

Many thanks.

barneystinson

vmac76 wrote: »

Hi,

I live with my family in galway but I am considering taking a job in Dublin. We own a house in Dublin and I am considering living there during the week (Mon-thur). My question is, can I rent the other rooms under the rent a room scheme? Currently the house is rented and we pay tax every year on this. We also own our house in Galway.

Many thanks.

That kite won't fly.

scheister

with rent a room relief you can claim it on your sole or main residents. If you are spending 4 nights a week in Dublin and 3 night a week in Galway could you argue that Dublin is your main residents. I would think for it to work it would have to be a longer term. If the job in Dublin is for 3 months you would not have a leg to stand on but if its for 2/3 years you might manage to get the relief

barneystinson

scheister wrote: »

with rent a room relief you can claim it on your sole or main residents. If you are spending 4 nights a week in Dublin and 3 night a week in Galway could you argue that Dublin is your main residents. I would think for it to work it would have to be a longer term. If the job in Dublin is for 3 months you would not have a leg to stand on but if its for 2/3 years you might manage to get the relief

It's not as simple as 4 days versus 3 for long enough equals PPR.

If the wife, kids, personal possessions and non-work interests remain in Galway, then that remains his PPR. Your PPR is your "home" - would you fancy explaining to a tax inspector or ultimately a judge how you "visit" with your wife and kids at weekends and during holidays, but then go "home" to your house in Dublin (where you live with strangers who rent rooms there), to live and work... good luck with that.

scheister

barneystinson wrote: »

It's not as simple as 4 days versus 3 for long enough equals PPR.

If the wife, kids, personal possessions and non-work interests remain in Galway, then that remains his PPR. Your PPR is your "home" - would you fancy explaining to a tax inspector or ultimately a judge how you "visit" with your wife and kids at weekends and during holidays, but then go "home" to your house in Dublin (where you live with strangers who rent rooms there), to live and work... good luck with that.

AFAIK rent a room relief just not mention PPR talks about sole or main residence so if he spends more time in dublin it would be his main residence without it being his PPR

barneystinson

scheister wrote: »

AFAIK rent a room relief just not mention PPR talks about sole or main residence so if he spends more time in dublin it would be his main residence without it being his PPR

From Revenue manual (http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf):
The room or rooms must be in a residential premises that is situated in the State and that is occupied by an individual as his/her sole or main residence during the particular tax year. An individual may live in more than one residence but can only avail of rent-a-room relief in respect of his/her sole or main residence. In general, 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. The individual does not have to own the residence and it could, for example, be occupied as rented accommodation.

From section 604 TCA 1997:
"(2) This section shall apply to a gain accruing to an individual on the disposal of or of an interest in—

(a) a dwelling house or part of a dwelling house which is or has been occupied by the individual as his or her only or main residence..."

There is a specific reference to section 604 in section 216A, to the effect that rent a room relief income will not affect entitlement to PPR relief.

Good luck trying to argue that "sole or main residence" and "only or main residence" do not amount to the same thing in this case.

vmac76

Thanks for all the replies. Your input is much appreciated