swapping houses, leases, PRTB required?

I am planning on moving from my own home to an investment home (bigger, nicer area) owned by my father. He will then rent out my property instead and there will be no rental payments between us. He is registered with revenue and PRTB for current investment property and will do so with new tenants in my property when the time comes. Obviously wanting to do this by the book, will we also need to sign leases and register the tenancies between us for both our houses if no rent money is changing hands or is there another way to do it like using licenses or something else? thanks

Thats an interesting plan.

So you grant him a lease of your house for 0 rent and he rents it out for €10k per annum. You move into his investment property and pay 0 rent.

I assume that there is no mortgage on his investment property as any interest would be disallowed.

If there are mortgages on both properties then it may be better to consider you renting your house out and then actually paying him a rent to get the benefit of the interest.

You always have to be careful in connected persons cases that revenue do not view it that you are collecting rent and giving it to him which in effect you are.

PRTB registration is not required for a property where "(h) a dwelling within which the spouse, parent or child of the landlord resides and no lease or tenancy agreement in writing has been entered into by any person resident in the dwelling"

http://www.prtb.ie/faq

@ Joe - No mortgage on my father's property, just my own.

DB74 said:

PRTB registration is not required for a property where "(h) a dwelling within which the spouse, parent or child of the landlord resides and no lease or tenancy agreement in writing has been entered into by any person resident in the dwelling"

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I've seen this but not sure it applies to us as we would be doing it both ways rather than one way and also my father would be leasing out rather than living in the property.

Do you think that you will have no tax liability under this setup? Have you had it confirmed by revenue?

In other property dealings, Revenue value at market value, even if it was given/sold "for free/less"

@SPC I think that in this case Revenue could argue that the OP is paying the same amount of rent received on their own house to their father for the rent of his property.

So the OP would have to look at their situation if they were in receipt of 10k in rent would they have the expenses to cover it otherwise they may have a liability especially if they have not registered the tenancy with the PTRB!

I dont think that argument works Joe.

This sounds like people who are trapped by negative equity - They rent out their home, and at the same time they rent a house that suits them better.

In this case, I understand that tax is due as normal on the rental incoming on their home, and the other rental expense can't be deducted.

I suspect that revenue will want you to pay tax on the rent on your home. and your father on the rent on his home. The fact that ye have decided to offset your payments between each other, does not in my opinion eliminate the tax.

Maybe this falls in a tax loophole at the moment, but if you don't have something in writing I would be wary.

@SPC I think we are arguing the same point.

Sorry Joe, I incorrectly read your reply.

Spot on, no bother!