Does rent a room scheme apply to family?

GarIT

If my mother were to buy an investment property in the city, and I lived in the main bedroom, and she then rented the other two rooms separately would she have the same benefits as available on the rent a room scheme. No notice, being able to change the locks, a certain amount tax-free etc.

ted1

GarIT wrote: »

If my mother were to buy an investment property in the city, and I lived in the main bedroom, and she then rented the other two rooms separately would she have the same benefits as available on the rent a room scheme. No notice, being able to change the locks, a certain amount tax-free etc.

No the rent a room is for the home she lives in.


http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf



You could rent the apartment and then sub let yo prople on a room basis making them a licensee then you get the advantages of being able to get rid of them if it's not working out. But your mother will have to pay taxes.
http://www.rtb.ie/docs/default-source/registration-docs/licensees.pdf?sfvrsn=2

pillphil

Notice and locks are related to licencees, amount tax free is rent a room. Two separate things.

The other people renting the rooms will be licensees even if they rent the rooms from your mother rather than be sublet by you. Living in the house with the son or daughter of the landlord classifies you as a licensee.

Your mother won't be able to claim rent a room relief as she doesn't live there. You on the other hand would be able to take the rent tax free if you were sub letting the rooms but you can't give it to your mother or she would have to pay tax on it then.

GarIT

Thanks for the info guys.