No, as it would no longer be your PPR.A second question is if I have lived in this house as my PPR for the majority of this year could I claim the rent tax free under the rent a room scheme this year to save on tax?
I think you need to draw up a contract at market rates and register as such with the RTB. This will protect you if you want to put it on the market at a future point.The house is in a rent pressure zone and if for example I only charge her €1,000 I could only increase the next lodgers rent to €1,080 when market rent would be as much as twice that.
The OP should seek good legal advice before committing to doing so.I think you need to draw up a contract at market rates and register as such with the RTB.
Of course you can! There are approx 20,000 households who live in properties rent free.I am not aware of any tax or legal reason why you cannot let your sister live in your house.
Problem here is that there are no alternatives available not to mind an affordable one in the current climate. there are literally hundreds of people applying for every place which makes getting a place difficult. She is looking as she would prefer to stay in the area she now lives in but its not that simple to find a place.Why not support her by helping to find her affodable alternatives or even with a few quid to get her going in an interim place picked from the open market. 2 years of her living suboptimally may prevent a life time of strife between you
I would be happy to give it to her for less than the going rate but she is about to start building a house and will only need my place for 2 years she maintains. The house is in a rent pressure zone and if for example I only charge her €1,000 I could only increase the next lodgers rent to €1,080 when market rent would be as much as twice that.
Don’t forget indefinite tenancies were put into law this year where after 6 months a tenant can stay indefinitely unless cancelled under certain grounds. Moving back in and sale(at the moment).You could write into the Contract that it is maximum two year Contract.
At the end of two years, you will ask her to move out or at the very least, another discussion will take place.
But you have an option to ask her to leave at that point.
At least you would have that set in stone for both of you. Rather than a nebulous 'as long as you need it, sure it's grand' sort of thing.
Also, who will be liable for repairs? The washing machine breaking down, the boiler needing a new circulation pump, the shower upstairs leaking?
That needs to be put in writing too.
I have seen Revenue argue the precise opposite, Brendan. And their stance makes sense, otherwise they might find themselves encouraging arrangements where part or all of the stipulated rent is paid under the counter as it were. They are generally happy to allow for genuine bad debt situations but this isn't a bad debt situation.You pay tax on the rent received and not on the rent set out in the lease.
As I said above, they need legal advice that should come up with this or a similar arrangement eg a licence to which the RTB rules would not be applicable. It's too subtle and nuanced a question for the well-intentioned amateurs here and the stakes are high if they get it wrong.Could the OP do the following:
- Put a rental contract in place specifying that it's a below market rent due to the right of the OP to come and go and use a room from time to time. I've heard that a 30% discount is acceptable in Revenue's eyes for this purpose.
- Seek to let the house in future at market rates. If there is any issue with the RTB the OP can make clear that the contract with the sister was not at market rates anyway so was not relevant.
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