Living away from PPR and Rent A Room Relief

Roro999

Registered User
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86
A friend of mine is going abroad for two years. She has a PPR and is wondering can she rent out the house to the rental value of a max €14k or must she live in it herself to avail of the tax free scheme ?
 

mathepac

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7,649
Once she moves abroad her PPR is abroad and any tax schemes for her property in Ireland cease as it is no longer her PPR.
 

JMJR

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29
Once she moves abroad her PPR is abroad and any tax schemes for her property in Ireland cease as it is no longer her PPR.
@ Mathepac: In the absence of knowing the intentions and actions of the OP's friend I am not convinced that your absolute statement is correct.
AFAICT from the below linked document exemption for CGT for a PPR can apply for time spent abroad as under under certain conditions PPR can remain in Ireland.
Moving Abroad irish Tax Guide Deloitte 2019

Rent-A Room, however, relies on a definition of 'residence', and does not talk about PPR. Residence is 'your home for most of the year', which I would read as you being there for at least 183 days per tax year to qualify for the RAR relief. Rent-A-Room Relief
Depending on this and on the OP's friends dates for leaving the country, she may be able to avail of the relief for up to 6 months of the two years abroad.
This is based on a literal & onesided interpretation of the Revenue guidance. It does not consider, say, where the OP's friend was frequently returning during the two years, to stay short periods in her house. Would that make a difference?

I'd welcome your and others thoughts on this.



Regards
 

Baby boomer

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741
Probably in Section 604 TCA 1997
Thanks, Gordon,

It's a horribly unwieldy section but sub-section 5 (b) seems clear enough and would appear to be good news for the OP:

(b) For the purposes of subsections (3) and (4)
(i) any period of absence throughout which the individual worked in an employment or office all the duties of which were performed outside the State, and
(ii) in addition, any period of absence not exceeding 4 years (or periods of absence which together did not exceed 4 years) throughout which the individual was prevented from residing in the dwelling house or the part of a dwelling house in consequence of the situation of the individual's place of work or in consequence of any condition imposed by the individual's employer requiring the individual to reside elsewhere, being a condition reasonably imposed to secure the effective performance by the employee of the employee's duties,
shall be treated as if in that period of absence the dwelling house or the part of a dwelling house was occupied by the individual as his or her only or main residence if both before and after the period the dwelling house (or the part in question) was occupied by the individual as his or her only or main residence.
 

Baby boomer

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741
Not necessarily. Are Rent-A-Room and PPR Relief cut from exactly the same cloth? I’m not sure.
I don't know. I'm not a tax lawyer! But, on the face of it, it seems unlikely that a term as specific as PPR would be defined differently in different contexts.
 

Ciru75

Registered User
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146
The term PPR isn't used in the legislation on rent a room relief.

In this section—
“qualifying residence”, in relation to an individual for a year of assessment, means a residential premises situated in the State which is occupied by the individual as his or her sole or main residence during the year of assessment;
 

Nikephorus

Registered User
Messages
42
Apologies for side-tracking the thread somewhat... I have another rent-a-room query.

We have a old stable at the other end of our garden. The back entrance to our garden/house comes through this building.

We are considering renovating half of the downstairs and all of the upstairs into an apartment and retaining half of the ground floor as a garage.

Would this qualify for rent-a-room tax relief?
It will be adjacent to and above where we park our car and store our tools etc. It is about 8m from the main house.
 

Nikephorus

Registered User
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42
No, it's not in your home. Also you'd need planning permission to convert this to habitable use.
Thanks Leo. Rent a room schemes don't need to be in your home, they can be self contained as long as they are adjoining your PPR. Does our garage (containing our only entry to the back of the house as we are terraced) count as part of our PPR I wonder?
 

Leo

Moderator
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13,609
Rent a room schemes don't need to be in your home, they can be self contained as long as they are adjoining your PPR.
It must be attached, part of the building.

Does our garage (containing our only entry to the back of the house as we are terraced) count as part of our PPR I wonder?
An attached garage, once suitably converted is allowable, but you should note that converting this to a self-contained unit will mean it falls under the remit of the RTB and must be registered.
 
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