Dublin_Resident
Registered User
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- 23
Hello,
I hope someone can let me know if I have grounds to challenge Revenue for removing my Mortgage Interest Relief.
I bought a large 1 bed apartment in late 2006 and this has been my Principal Private Residence (PPR) since that date. I've had a child since then and my partner and I decided last year to use my unpaid parental leave entitlement and visit her family abroad on an extended 4 month holiday (I'm a full time employee).
I didn't want to rent the apartment out while I was away and lose all my entitlements for such a relatively short period of time. At the same time I still had the mortgage and bills to pay so I researched potential options that were available to me.
A friend suggested the 'Rent a Room' scheme and was also prepared to be the 'rent a roomer' for the 4 month period. He would pay me for using a room and also all the bills while I was away.
I researched the scheme in a lot more detail and it seemed like a viable option as:
- The apt would remain my PPR (Revenue view this over a 12 month period as I see it).
- Any payments received by me would be well under the exemption limit of €12,000.
- We didn't need to register with PRTB
I also understood that I didn't need to inform Revenue of our plans to use this scheme. I didn't see where you had to 'appy' for this scheme in advance and was reassured by the following line on the Citizens Information site:
"If you do not make an annual tax return and your income from rent and related services is under the exemption limit, you do not have to claim rent-a-room relief as it will apply automatically"
Long story short we went ahead with it. My small family and I were abroad for about 16 weeks (end of 2015 until last week).
My friend has been 'renting a room' at my apt and paying the bills while we were away.
We are now moving back in to the place and returning all the bills to my name. I am also returning to work.
Today I opened a letter from Revenue (dated mid January) stating that they believed the apt was not my PPR (interested in how they figured this actually - probably the Irish Water bill?) and that unless I completed a form and furnished them with a recent utility bill my Mortgage Interest Relief would be stopped. This was due by the end of January!
I would love to understand if I have grounds to challenge Revenue for removing this?
I am also concerned if there could potentially be any further implications if Revenue believe this is not my PPR - such as loss of my Tracker mortgage, TRS clawbacks etc.
Any help or advice greatly appreciated.
I hope someone can let me know if I have grounds to challenge Revenue for removing my Mortgage Interest Relief.
I bought a large 1 bed apartment in late 2006 and this has been my Principal Private Residence (PPR) since that date. I've had a child since then and my partner and I decided last year to use my unpaid parental leave entitlement and visit her family abroad on an extended 4 month holiday (I'm a full time employee).
I didn't want to rent the apartment out while I was away and lose all my entitlements for such a relatively short period of time. At the same time I still had the mortgage and bills to pay so I researched potential options that were available to me.
A friend suggested the 'Rent a Room' scheme and was also prepared to be the 'rent a roomer' for the 4 month period. He would pay me for using a room and also all the bills while I was away.
I researched the scheme in a lot more detail and it seemed like a viable option as:
- The apt would remain my PPR (Revenue view this over a 12 month period as I see it).
- Any payments received by me would be well under the exemption limit of €12,000.
- We didn't need to register with PRTB
I also understood that I didn't need to inform Revenue of our plans to use this scheme. I didn't see where you had to 'appy' for this scheme in advance and was reassured by the following line on the Citizens Information site:
"If you do not make an annual tax return and your income from rent and related services is under the exemption limit, you do not have to claim rent-a-room relief as it will apply automatically"
Long story short we went ahead with it. My small family and I were abroad for about 16 weeks (end of 2015 until last week).
My friend has been 'renting a room' at my apt and paying the bills while we were away.
We are now moving back in to the place and returning all the bills to my name. I am also returning to work.
Today I opened a letter from Revenue (dated mid January) stating that they believed the apt was not my PPR (interested in how they figured this actually - probably the Irish Water bill?) and that unless I completed a form and furnished them with a recent utility bill my Mortgage Interest Relief would be stopped. This was due by the end of January!
I would love to understand if I have grounds to challenge Revenue for removing this?
I am also concerned if there could potentially be any further implications if Revenue believe this is not my PPR - such as loss of my Tracker mortgage, TRS clawbacks etc.
Any help or advice greatly appreciated.