First Time Buy + Rent

T

thespecialon

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A friend of mine lives in town X and works in town Y. he owns a house in town X,where he lives with his girlfriend, he never had a mortatage on it as his parents gave him the site and assisted him in building it. He now wants to purchase a house/apartment in town Y where he works, basically planning to stay a few nights there during the week to reduce his daily commute. Basically wants to know-

Is he considered a first time buyer?
What are the stamp duty + FTB relief implications if any?
If he decides to rent 1 or more of the rooms in the new property, is this taxable?
 
As far as I can see he is NOT a FTB for stamp duty purposes as he has already built a house (you are disqualified once you build or buy a house anywhere in the world).

Wrt to rent, it is taxable if the rent received is above the rent-a-room scheme threshold. But he must also occupy the property to avail of this exemption. The number of rooms rented is irrelevant AFAIK.

But if he is splitting time between 2 properties, I don't think he will be eligible for the rent-a-room scheme, but I'm open to correction on that.

He will be able to set the mortgage interest payments against the rental income in computing his tax bill on the rental property.
 
you say he must also occupy the house to availabe of rent relief scheme..but what is defined as occupying the house as he will spend certain weeknights therre but return home on weekend>?
 
Just occupying a property for a few nights doesn't make it one's PPR. There is no hard and fast definition as far as I know but in practice one's PPR is the place in which one resides normally.
 
so would it be best to declare the property he is considering purchasing as his PPR..the house he currently lives in has no mortatage repayments etc. and is the family home so wont be sold in the future?Any downfalls to doiing this?
 
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