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Help to Buy - Letting Property

  • 24-04-2021 6:37am
    #1
    HowsTricks101
    Registered Users, Registered Users 2 Posts: 2 ✭


    Hi all,

    I purchased a property last year and received the help-to-buy allowance and have lived there as my home. I've been offered the opportunity to move abroad with my company but I'm unsure if I'm allowed to rent my home while I'm gone. The HTB scheme seems to state that you must live in your home for 5 years.

    Does anyone have any advice as I really want to take the job offer but can't afford to leave the property vacant and pay the mortgage while I'm gone?

    Thanks
    Tagged:


Comments

  • #2
    Toulouse
    Registered Users, Registered Users 2 Posts: 2,413 ✭✭✭Toulouse


    Revenue will be entitled to claw back a refund.

    Pay the refund - rent the house.

    Your mortgage may also be affected.


  • #3
    Bass Reeves
    Registered Users, Registered Users 2 Posts: 19,583 ✭✭✭✭Bass Reeves


    Talk to revenue. Tell them you have been requested to work abroad with the company you work for. They may allow you some leeway in repaying

    Slava Ukrainii



  • #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    Bass Reeves wrote: »
    Talk to revenue. Tell them you have been requested to work abroad with the company you work for. They may allow you some leeway in repaying

    They have a set formula- they don't deviate from it.
    A voluntary declaration does not attract the same penalties, as would be the case if/when they discover it (such as through the tenant claiming HAP or the registration details from the RTB).

    Weigh up your options- depending on how long you're going to be abroad- and cognisant of Part IV tenancy rights kicking in after 6 months- it might very well be preferable to leave the property vacant altogether (notwithstanding the fact that you'll still have to pay the mortgage etc).

    Note- when letting the property- the rental income is taxable anyway- depending on the level of deductions you have, possibly at up to 53% (the big deductible is mortgage interest- note: only the interest component).

    Sit down and do your sums- its not the clear cut case you might think it to be.


  • #5
    dennyk
    Registered Users, Registered Users 2 Posts: 1,783 ✭✭✭dennyk


    The_Conductor wrote: »
    Note- when letting the property- the rental income is taxable anyway- depending on the level of deductions you have, possibly at up to 53% (the big deductible is mortgage interest- note: only the interest component).

    Also, don't be thinking you can slip by without paying the taxes; as a landlord living abroad, your tenant will be required to deduct 20% from their rent payment off the top and send that to Revenue on your behalf, while sending you the remaining 80%. If you let via an agent in Ireland, that agent will be required to do the same.

    In the current year, you might end up paying up to 53% on your rental income, as your PAYE income from this year will also be counted towards hitting those upper income tax and USC bands. In later years it should be closer to 20%, though, if you live abroad and don't have any other Irish-sourced income, unless you're letting out an incredibly expensive property (like, say, a mansion in the midlands or a derelict shed in Ballsbridge).


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