rent-a-room

B

beano

Guest
Hi,

I would be grateful if somebody could clarify the following points on the rent-a-room scheme:

1. Is there a ceiling of €7,600?

2. Does this mean that somebody with rental income above this (say €9,500) does not qualify or does it mean that you still qualify for the first €7,600?

3. If you claim rent-a-room does this still qualify as your PPR and therefore allowing you to claim mortgage interest relief etc

Thanks
Beano
 
-

1./ Correct.

2./ It means you do not qualify. One euro over the threshold and the entire amount becomes taxable so it's best to keep it under.

3./ No effect on your PPR status (as long as it IS your PPR) and no problems with mortgage interest relief.

It's really just a means of generating tax-free income subject to the threshold, no relevance to ppr, cgt etc.
 
Re: -

Thanks for that... would also help if you could clarify if the €7,600 limit is a gross rental figure i.e. is it possible to net off mortgage int or expenses to make it €7,600?
 
Limit

The rent a room limit is gross ( i.e. before expenses). It was originally £6K (€7,618) . I'm not sure what the current limit is but revenue.ie will have it.
 
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