Claiming Rent Relief

I have just moved in with my boyfriend to whom I pay €700 a month in rent. Can I claim rent relief on this?

He owns the property that we are living in and claims mortgage interest relief. I don't think there will be any implication for him to declare this income from me as it will be tax free under the Rent-a-Room scheme.

I'm just worried that there may be some issue since I am not technically "renting a room" from him and - all things going to plan - we may get married in the next few years, at which point I assume I couldn't claim this relief any more.

It seems we are claiming twice since he is getting interest relief on the full amount and then I am getting rent relief on my share of this. Any issues with this?

kiely2 said:

I have just moved in with my boyfriend to whom I pay €700 a month in rent. Can I claim rent relief on this?

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I'm just worried that there may be some issue since I am not technically "renting a room" from him

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You mean that the purported rental payments from you to him are actually simply a ruse in order for you to claim the private rented accommodation tax credit? If so then claiming it would presumably be fraud. I'm not sure that a cohabiting partner can claim the tax credit in this case anyway. Best to check with Revenue.

If it's a real rental situation, then g/f should be able to claim rental relief I think. Either she's renting or she's paying the mortgage, but it appears that she's renting from the post. OP, are you in fact just paying half the mortgage? Do you have an agreement to cover this (e.g. covering what happens if you break up)? Under the "renting" situation you would really be saying that you will have no interest in the home in the case of a break-up. I don't see why someone can't claim rent relief if they are paying rent, even if they are doing "the bold thing" as well.

If they can't claim joint taxation and mortgage payments aren't masquerading as "rent", then I think she should (morally that is) be entitled to rent relief.

I don't know the actual answer to be honest but a call to Revenue will give you the info.

Sprite

Thanks for replies, my boyfriend and I agreed when I moved in that I am renting as opposed to paying half the mortgage - as this is less complicated this way if the worst did happen.

Also we have all our finances separate e.g. separate bank accounts, split all the bills etc and I transfer rent into his account monthly.

Fill in rent 1form and send to Revenue to claim rent relief . Just ensure that your address and your landlords address are different. ie for tax purposes keep you old address as your address for correspondence from tax office.

allthedoyles said:

Fill in rent 1form and send to Revenue to claim rent relief . Just ensure that your address and your landlords address are different. ie for tax purposes keep you old address as your address for correspondence from tax office.

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Now I don't think that's kosher at all!

In any case, there shouldn't be any problem having the same address - all rent-a-room people will ipso facto have the same address as their landlord.

Sprite

I think you'd need to check with Revenue on this one - something doesnt sound right.

Married couple - one person cannot claim rent relief if living in house registered in other persons name (rather than joint names).

It does not make sense that an unmarried cohabiting couple could avail of rent relief as it would make the scheme un-Constitutional. Cohabiting couples cannot be in a better position than married couples.

I would be very very surprised if Revenue do not have a rule against cohabiting couples claiming and technically speaking, one of the parties of a cohabiting couple cannot be "renting a room" if they are actually sharing it with the landlord/owner.

I'm just worried that there may be some issue since I am not technically "renting a room" from him and - all things going to plan - we may get married in the next few years, at which point I assume I couldn't claim this relief any more.

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csirl said:

I think you'd need to check with Revenue on this one - something doesnt sound right.

It does not make sense that an unmarried cohabiting couple could avail of rent relief as it would make the scheme un-Constitutional. Cohabiting couples cannot be in a better position than married couples.

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I agree that Revenue may have a problem with it but cohabiting couples don't get any of the benefits of a married couple so are NOT in a better position. Co-habiting couples can't merge their tax allowances and so (in my view) they should, morally, be able to claim rent relief if one is renting from the other.

Sprite

I can't see where the problem lies with OP's application for rent-relief. There is no question that I remember seeing on the application form that asks if they are

WaterSprite said:

... doing "the bold thing" as well ...

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. So technically they are in the clear.

Just answer the bits on the forms that are asked honestly and if they ask more questions, answer those honestly as well.

What have you got to lose, kiely2?

I assumed that "doing the bold thing" meant evading tax.

I agree that Revenue may have a problem with it but cohabiting couples don't get any of the benefits of a married couple so are NOT in a better position. Co-habiting couples can't merge their tax allowances and so (in my view) they should, morally, be able to claim rent relief if one is renting from the other.

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They are in a better position in relation to this particular item of the tax code. I dont think the Constitutional provisions work along the line of "...well the miss out on this tax item, but get better deals in other parts of the tax code..." - they work on an item by item basis. You have to look at rental reliefs in isolation from tax credits (remembering that a large proportion of the population do not earn enough to pay tax).

ClubMan said:

I assumed that "doing the bold thing" meant evading tax.

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Nope! I was being a little more scurrilous

csirl said:

They are in a better position in relation to this particular item of the tax code. I dont think the Constitutional provisions work along the line of "...well the miss out on this tax item, but get better deals in other parts of the tax code..." - they work on an item by item basis. You have to look at rental reliefs in isolation from tax credits (remembering that a large proportion of the population do not earn enough to pay tax).

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Fair enough, but if you do compare tax credits for rent relief, then married people "should" be able to get rent relief - it's not that unmarried co-habitees shouldn't because married people can't. It all depends on whether one compares unmarried co-habitees to married people or to two single people who are not in a relationship. Considering they are treated for all other purposes as single people, that's why I think they should indeed get the rent relief.

Just because two people are in a relationship, does that mean they shouldn't get rent relief? What's the determining factor - sharing a bed? Just wondering out loud - I'm not sure where the bright line is (or if there is one) before you cease being two individuals and transform into "co-habitees" and if that does indeed magically transform them into a different tax entity purely for the purposes of rent relief. I realise that Revenue apply these types of principles in relation to Lone Parent relief but have no idea if e.g. a lone parent loses relief if they have someone living with them with whom they are not having a relationship.

I might give Revenue a quick call on this just to find out what their official position is.

Sprite

Ok - just called Revenue (jeez, I have way too much time on my hands) Yer-man said "absolutely" I can claim rent-a-room relief (under the threshold) for my hypothetical live in b/f and my b/f can claim rent relief on the rent he pays me.

Now, where to find a b/f......

Sprite