Johnnyinthesky
Registered User
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Yes. An adjoining apartment which we let under rent a room for €1100 per month.
On Rent A Room -yes it does qualify and I have checked this with revenue. It is attached to and was part of the main house so therefore qualifying.
I also checked if we can rent it out even though we are not the owners of the main house and we can provided in laws allow which they do.
I thought so too. I think this is what is done. It is earmarked for college I think.You don't need to have access to it. Just be the beneficiary. This is for the OP's minor children - it's very common to use a bare trust in this scenario (I have one for my own children).
Revenue dont put anything about rent a room in writing. They do get you to sign a declaration though and I assume check it against PPS & tax. Yes there is nothing in the guidelines to say you can't. If we are living in the house ( at a long term cost to tax liability) then we can rent the apartment.Have you this in writing from Revenue?
I am really surprised that you can own an apartment and someone else can own the house attached to it, and you can get rent a room relief.
'For you to qualify for rent-a room relief, your home must be located in the State and you must occupy it as your sole residence during the year of assessment. This means that it is your home for the greater part of the year and is where people would normally expect to make contact with you. In most cases, you do not have to own the property – you could be a tenant and be sub-letting to someone else'Have you this in writing from Revenue?
I am really surprised that you can own an apartment and someone else can own the house attached to it, and you can get rent a room relief.
From what you have said so far, it sounds like you are incorrectly claiming the rent-a-room relief and you have not had it confirmed by revenue. You don't have it in writing so it was verbal. Your verbal description to revenue may not have described the property correctly so they may have said yes based on incorrect information supplied.I do think the rent a room is valid but if it is not then I need to replace that income through salary
No I think its correct. Revenue don't issue a yes or a no as they dont visit the site. They do get a declaration and check I assume against deeds & mortgage. Its declared on your tax return and they can see that. You can also opt out and in in a yearly basis if you wish - so if I wanted to refurbish & claim costs which I cant do under rent a room I can do so under normal rent rules (assuming tenants were OK with this of course)From what you have said so far, it sounds like you are incorrectly claiming the rent-a-room relief and you have not had it confirmed by revenue. You don't have it in writing so it was verbal. Your verbal description to revenue may not have described the property correctly so they may have said yes based on incorrect information supplied.
For the property to be gifted to your spouse, it must have it's own title/deeds, is this correct? If so, they are 2 independent properties that happen to be attached, much like any semi-D and would not qualify for the rent-a-room relief. I would be getting this double and triple checked by someone competent who can tell you if it is a self-contained unit or not. More than likely an engineer or architect familiar with planning regulations and not an estate agent. You could be facing years of unpaid tax if your don't correct it now
Self-contained unit
You cannot claim this relief if you let the whole property. This relief is conditional on you being a resident in the same property as your tenant, who is giving you rent. On the other hand, the property can have a self-contained unit, such as a garage, or basement flat. The unit needs to be attached to the main property building. If it is not attached, you cannot claim this relief.
There are tens of thousands of rent-a-room declarations a year. Revenue do not check against deeds or collect mortgage details from banks. Even if they did collect and analyse this data it wouldn't tell them whether the property in question is compliant as people make alterations and renovations all the time.They do get a declaration and check I assume against deeds & mortgage.
It does not have to be self contained within (see basement flat reference). You can rent a room in your house or an attached building once it was attached. Thats the case. You dont even have to own the building to rent it out.
The simplest way to distinguish it is whether they can be sold separately, which in your case they can because they are two independent properties. The "attached but separate" that the rent-a-room refers to is access to the property. You and your tenants can have separate entrances and not share any common space but ultimately it is still a single property that could only be sold as one propertyThe other people who I know in rent a room have exactly the same scenario. Attached but seperate
It looks like you need a new accountant as well as new FA...
Just note, this has absolutely nothing to do with Tax legislation. There are completely separate definitions for Residential Tenancies Act and the Rent a Room relief in TCA.The residential tenancies legislation provides for security of tenure for tenants. These provisions are in Part 4 of the Residential Tenancies Act 2004. However, if the self-contained flat or apartment was originally part of the main house, you can choose to opt out of these provisions. This option is available under Section 25 of the Act. You must give the tenant notice in writing, before the start of the tenancy, if you wish to take this option"
I just got a response from Revenue via my enquires online. I am correct and it is covered. They asked about it adjoining the house, does it have own entrance, is it RTB REgistered, Rental Income. All of which I provided so it appears it is covered.Yes, correct but that is not your situation.
You own one property and are renting out the entire property. It is not your sole or main residence. You live in a separate property that is adjoining but it is distinctly not part of the same property. Both properties have separate titles/deeds so you cannot describe as a self-contained unit just because it was once part of the same building and continues to share a party wall.
It's very clear to me that you are incorrectly claiming this relief and that you have made incorrect assumptions about the self declaration. As @NoRegretsCoyote has pointed out, the burden is on you to accurately declare information that you submit.
The simplest way to distinguish it is whether they can be sold separately, which in your case they can because they are two independent properties. The "attached but separate" that the rent-a-room refers to is access to the property. You and your tenants can have separate entrances and not share any common space but ultimately it is still a single property that could only be sold as one property
It looks like you need a new accountant as well as new FA...
I understand that. I read the circular also again today. I was putting it there to illustrate the revenue distinction of seperate: However, if the self-contained flat or apartment was originally part of the main house....Just note, this has absolutely nothing to do with Tax legislation. There are completely separate definitions for Residential Tenancies Act and the Rent a Room relief in TCA.
I'd definitely be seeking more technical advice in your circumstances.
I agree that is it covered, the docuemnt linked to above specifically makes reference to a basement flat being eligible.I just got a response from Revenue via my enquires online. I am correct and it is covered. They asked about it adjoining the house, does it have own entrance, is it RTB REgistered, Rental Income. All of which I provided so it appears it is covered.
It is exactly the same scenario for a friend who is doing rent a room with adjoining building.
I understand that. I read the circular also again today. I was putting it there to illustrate the revenue distinction of seperate: However, if the self-contained flat or apartment was originally part of the main house....
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