Principal private residence rent a room

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diceyreilly

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Hi All
I have- house long term rental which is close to a college my son is going to. Student accommodation is difficult to source.
Rent at the moment €1950 per month gross ( 4 bed semi naas)
I would like to place my son in our house to utilise the rent a room allowance.
Does my son just nominate this house as his principal private residence and limit house sharing to €14000 per annum.
OR
Do I need to sign the property over to him which at this stage is not ideal (CGT etc).
Any advice appreciated
If someone has actually done similar would be great to get some pointers to keep on the right side of regulations. Thanks
 
This is a bit confusing. Is this correct?

1) You own a rental property
2) It is empty - there are no tenants. (How do you have rent if you have no tenants?)
3) Your son will live in it, rent-free
4) He will rent out a room to another tenant for <€14,000 a year.

The tax saved is only €7,000 a year. Probably not worth signing the house over to him for that, unless you are planning to sign it over to him anyway.
 
This thread might be relevant.

Could my daughter move into the second property rent-free? Is this acceptable to Revenue or will there be issues?

My husband and I are in a middle of buying a second property, a nest egg. We have some savings into the bank and want to put them to good use. Our daughter is in her final year of college, and lives with us at the moment. She would like to move out and rent/ save for a deposit in due time, but...
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There are a few others in a similar vein that might be worth checking out.

 
The rent a room relief would be accessed by your son, not you, regardless of whether he owns the house or not. He would have to keep all the rental income and not remit any of it to you.

While Revenue allow support for students below a certain age, whether or not they would consider your gift of an entire 4 bed house for him to rent out and keep the proceeds to be in excess of normal support is a question to consider.
 
There should be no CAT consequence from letting him live there rent free because the accomodation is part of the cost of giving him an education. Same way that if you pay his rent while he's a student, that's not factored into his lifetime CAT gifts and inheritance allowance, even if it's more than €3k per year.

If he decides to license rooms to other people, well, you could say that you have no hand, act or part in that.
 
This is a bit confusing. Is this correct?

1) You own a rental property :yes
2) It is empty - there are no tenants. (How do you have rent if you have no tenants?) : it is rented at €1950 per month. Tenancy would need to be terminated
3) Your son will live in it, rent-free : yes
4) He will rent out a room to another tenant for <€14,000 a year. : yes

The tax saved is only €7,000 a year. Probably not worth signing the house over to him for that, unless you are planning to sign it over to him anyway.
 
diceyreilly said:
This is a bit confusing. Is this correct?

1) You own a rental property :yes
2) It is empty - there are no tenants. (How do you have rent if you have no tenants?) : it is rented at €1950 per month. Tenancy would need to be terminated
3) Your son will live in it, rent-free : yes
4) He will rent out a room to another tenant for <€14,000 a year. : yes

The tax saved is only €7,000 a year. Probably not worth signing the house over to him for that, unless you are planning to sign it over to him anyway
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