Rent on residential home

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MoiMoi

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I am thinking moving in to my girlfiend's house, rent out my own place and will contribute rent towards her mortgage, around 500 euro and split the bills. My mortgage is currently 800 euro per month, the rent income can be at 1200. i was wondering what would be the tax implication?

Can i claim 500 euro on rental relief? Can i use the room rental scheme of my house? i guess i would have to pay 42% of my rental income, anyone in similar situation, will appreciate your advice
 
MoiMoi said:
Can i claim 500 euro on rental relief?
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On the rent paid to your girlfriend? Yes. But depending on the total rent there could be tax implications for your girlfriend - particularly if she exceeds the rent a room limit of €7,620.
Can i use the room rental scheme of my house?
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Not if you are renting elsewhere and it is no longer your PPR (Principal Private Residence). There are other implications such as CGT on some portion of any eventual resale gain, inapplicability of owner occupier mortgage interest relief, your lender may need to be informed that you are renting the property out, you may need non owner occupier property/contents insurance etc.
i guess i would have to pay 42% of my rental income, anyone in similar situation, will appreciate your advice
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See the Property Management FAQ thread for details of the tax issues relevant to rental properties. You should get independent, professional advice if you are not sure about the issues.
 
Thanks Clubman, why do i have to inform my lender that i am renting out my house, what difference does it make? my understanding is that they are happy when the money are paid into their account every month. is there something i miss?
 
Check the terms & conditions of the mortgage loan agreement that you signed. Chances are they state that if you rent the property out or it otherwise ceases to be your PPR then you must inform them. They may not do anything but they will need to stop granting owner occupier mortgage interest relief at source and they may decide to charge a higher rate once it becomes an investment property.
 
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