Is 2 primary resident property allowed

sunnyashfield · 08-03-2018 12:32pm #1

I have 2 property both mortgaged initially with PSTB (as they allow 2 property as primary resident) recently because of interest rate I moved one to KBC.
I work in Dublin & live in Dublin house during working days and renting other 2 rooms in it and claiming rent a room relief.
and my family lives in countryside in other house ( No rental income), I travel back during weekend.

So question is:
-How revenue will look this?
-Is 2 primary resident property allowed in my case? ( bank allowed me, they have all information)
-if allowed then claiming renting a room scheme is ok ?

Lumen · 08-03-2018 12:34pm

No.

If in doubt, ask Revenue.

Askthe EA · 08-03-2018 1:00pm

AFAIK, Revenue only allow one PPR (Principle Primary Residence) bu as Lumen says, ask them.

Theyre people not to be messed with!

08-03-2018 1:05pm

Revenue don't say it has to be your only residence (or use the term PPR in the rules), just your main residence to qualify.

Once you spend more time in the Dublin house than your other house you are covered and as you work 5 days a week its quite easy and reasonable to make this argument (even if you don't really spent the 5 nights in the Dublin house). Nobody is tracking your movements.

I would think you are fine, there is noting to stop rent a room being used in this way and I would guess its far from unusual as people have even posted here about doign so in the past afaik.

Lumen · 08-03-2018 1:07pm

Oh, you're really not asking whether you can have two PPRs, you're asking if your Dublin residence qualifies as your main residence.

Revenue guidance here:

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/what-type-of-residence-qualifies.aspx

Revenue wrote:

Sole or main residence
Your main residence is your home for most of the year and where friends would expect to find you. You do not have to own the property to claim relief.

The room or rooms must be in a residential property that is located in Ireland. You must use it as your main residence during the tax year.

I'd guess that your friends might expect to find you in either place, but the important part is "your home for most of the year".

How many nights a year do you sleep in it?

sunnyashfield · 08-03-2018 1:08pm

Thanks , I just rang revenue and explain all scenario, Lady said its ok to have 2 property as primary resident as we are living in different locations and hence allowed for rent a room scheme as well.
But how to get it documened or have a proof as this was just a phone conversation. I am just causious , in case revenue question this latter?

Lumen · 08-03-2018 1:11pm

There is more detail here:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf

PDF trumps website :-)

4.1 Sole or main residence

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 occupiedas rented accommodation.

08-03-2018 1:13pm

sunnyashfield wrote: »

Thanks , I just rang revenue and explain all scenario, Lady said its ok to have 2 property as primary resident as we are living in different locations and hence allowed for rent a room scheme as well.
But how to get it documened or have a proof as this was just a phone conversation. I am just causious , in case revenue question this latter?

If they question it all you have to say is the same argument you made on the phone. You spend most of your time is Dublin as this your main base for both work and access to Dublin for non-work activities etc.

I would go so far as to say the this is one of the scenarios for which rent a room relief was introduced. If you had to pay tax you probably wouldn't bother renting out rooms but enabling you get in some money tax free opens up bed spaces in a city with very high demand, especially in the current climate.

Lumen · 08-03-2018 1:16pm

Just keep a record of how many nights you spend in Dublin.

Not on your bedpost though, in case the family comes to visit.

sunnyashfield · 08-03-2018 1:17pm

thanks alot Lumen and Vaughn Wonderful Instep, your reponses ease off me now.

Claw Hammer · 08-03-2018 6:39pm

In the case of doubt, your tax return should contain a reference to the situation.
This is known as an expression of doubt. You can look up the meaning on the revenue website.

Is 2 primary resident property allowed

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