Moving to UK for two years and Tax Status re PPR & Lodger (in my flat)

J

johnfenit

Registered User
Messages
33
Hello,

I currently share my PPR flat with a lodger. I will be moving mid year to UK for two years and wondering:

1) at what stage does my apartment cease to be my Principal Private Residence?

and

2) Lodger income currently tax free. Will that tax status change when I move abroad?

thanks

John
 
Given the difficulty in regaining possession of your home when you return, you might be as well to give your lodger notice & leave the apartment empty while you are away.

I will fully agree with anyone who says that is it shocking to leave an apartment empty when we are crying out for homes, but that's the nonsensical position our government has left us in.
 
johnfenit said:
1) at what stage does my apartment cease to be my Principal Private Residence?
Click to expand...
For rent a room relief at the point it no longer becomes the place where friends and family would expect to find you. So in your case basically straight away.


johnfenit said:
2) Lodger income currently tax free. Will that tax status change when I move abroad?
Click to expand...
It becomes taxable as normal income and this depends on when exactly you move to the UK.

Bear in mind you start to potentially accumulate a CGT gain for the period it is no longer your PPR.


DannyBoyD said:
Given the difficulty in regaining possession of your home when you return, you might be as well to give your lodger notice & leave the apartment empty while you are away.
Click to expand...
It depends on whether the lodger has the status of tenant or licensee. For a stereotypical lodger they are most likely a licensee. They would retain this status if say for example owner kept keys, own room, and a right to come and go when back in Ireland. A licensee has very few rights and essentially has to leave on demand.
 
DannyBoyD said:
After 6 months of sole occupation I'd be pretty sure the lodger could successfully claim a part 4 tenancy.
Click to expand...
Sure, but probably not if homeowner retains access and exercices said right. I'm not an expert here and open to correction of course.

@johnfenit - this is not at all a tax question but should be part of your thinking.
 
Don't forget, unless the OP has an Agent in Ireland to collect the rent the (now) tenant becomes responsible to withhold tax and remit it to Revenue.
As others have said the easiest option is to get rid of the lodger, before they become a tenant! Such is the mess of our current laws...
 
Last edited:
DannyBoyD said:
After 6 months of sole occupation I'd be pretty sure the lodger could successfully claim a part 4 tenancy.
Click to expand...
I think this is right, certainly if they were minded go the RTB with a case they would be granted a part 4 tenants and you never know who would lake a case, in the current market they might feel they have no option.
 
I think if you are moving with work, there is some exemption where the house can still be classified as your PPR, not sure of exact rules, but maybe Google search might throw up something.

Assume thus us probably for CGT purposes, and rent a room no longer applies.

Wouldn't apply if not moving with current employer.

I could be wrong
 
DannyBoyD said:
Given the difficulty in regaining possession of your home when you return,
Click to expand...
What do you mean exactly? Your assertion is wholly predicated on the assumption and the unlikely (and it is statistically very unlikely) event that the tenant refuses to vacate. Get real lads and stop this constant AAM scaremongering. Ridiculous.

Time and again this nonsense is trotted out on this forum by the, generally speaking, same few tired and scarred contributors. Life as a landlord aint all that bad.
 
Last edited:
Funny how so many property owners are getting out of the business citing exactly this issue.
 
DannyBoyD said:
Funny how so many property owners are getting out of the business citing exactly this issue.
Click to expand...
If they're getting out of the property rental business because they can't evict their tenants and move back into the property as their PPR then they were getting out of the business anyway.
 
cloughy said:
I think if you are moving with work, there is some exemption where the house can still be classified as your PPR, not sure of exact rules, but maybe Google search might throw up something.
Click to expand...
You can qualify for full CGT relief if you move abroad for work and then return to the house and occupy it again as your PPR. See section 3.8 here.

This is independent of rent-a-room relief rules and tenancy law.
 
Last edited:
ClubMan said:
If they're getting out of the property rental business because they can't evict their tenants and move back into the property as their PPR then they were getting out of the business anyway.
Click to expand...
Quite. So advice to OP stands.
 
DannyBoyD said:
Funny how so many property owners are getting out of the business citing exactly this issue.
Click to expand...
Of course some are. And we hear about it on this forum. Many arent. We dont hear so much from them. Dont believe the hype and try and keep an open mind.
 
You must log in or register to reply here.
Back
Top