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Tax Relief on PPR room rented & absent part of year

  • 07-12-2017 7:15pm
    #1
    jamboree
    Registered Users, Registered Users 2 Posts: 12 ✭


    I would appreciate some clarification on this one. I currently own an apartment that I will be renting out in the new year. I am looking at the purchase of another more suitable for me. I intend to keep the original & rent it, & live in the second apartment and rent a room in it. This rented room will qualify for the tax free rent-a-room as this second apartment will be my principal primary dwelling (PPR).

    Assuming I can get one in this crackpot market, from June 2018 I estimate I will be abroad for circa 4-5 months, returning to Ireland to live in the same apartment. Can I continue to rent the room in that apartment on a tax-free basis for the duration I am gone and carry on as normal on my return? The room will (ideally) be rented to the same person throughout etc. I am tax resident, employed in Ireland full time etc and will continue to be during the period I am gone.

    If not, does this mean I\'d have to go through the whole PRTB rigmarole etc for the person sharing the apartment for the duration I am gone.

    Appreciate any assistance on this, I'm sure many have been in a similar situation
    Tagged:


Comments

  • #2
    VonBeanie
    Registered Users, Registered Users 2 Posts: 101 ✭✭VonBeanie


    Being abroad for 4-5 months should not change your tax residence from Ireland.

    I don't think this length of absence would change your PPR either. However, I would rent using short term rentals (AirBnB etc) to avoid any possible view that the people staying there are licensees. This income would not be tax free and would not be under the rent-a-room scheme, but it would make the clarification of the legal status of the residents much clearer and is a safer route IMO.


  • #3
    jamboree
    Registered Users, Registered Users 2 Posts: 12 ✭jamboree


    Thanks for the response.

    Yeah it's a bit of a toss-up. With regards to the risks, I will have to investigate further. Under the rent-a-room scheme the person living in the apartment I intend to live in is not a tenant under the meaning of normal landlord-tenant rules and the risks are less from my perspective.

    There are still risks to be considered of course, and short term rentals may be a better approach all things considered.


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