Renting 'Buy to Let' to son

Clare12 said:
Go back to your first post and then tell me you are not confused,
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Go get proper professional advice. If they contradict me, get it in writing, send it to me in strictest confidence and if my advice is proven wrong, I'll pay €100 to a charity of your choice.
 
Clare12 said:
'For you to qualify for rent-a room relief, your home must be located in the State and you must occupy it as your sole residence during the year of assessment. This means that it is your home for the greater part of the year and is where people would normally expect to make contact with you. In most cases, you do not have to own the property – you could be a tenant and be sub-letting to someone else. (In these cases, you should check with your landlord that sub-letting is allowed – see our document on tenants’ rights and obligations.) However, if you are renting to a HAP tenant you must own the property and provide proof of ownership.'
From this, my understanding is, my son could sublet a room and clain the rent a room relief. This is quite interesting.
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You're making a mistake there. That rent a room would be if it were your home. Your sole residence. Your son does not own the property, he is staying there. It is clearly a buy to let. But under the RTB rules, you have an exemption from registering in the RTB because he is your son.

What the above seems to be referring to is where you Clare rent a property to Tenant x, a proper landlord and tenant agreement, which would be registered with the RTB. Then tenant x decides to bring in other people to rent from him. As sub tenants. And according to that they are under the rent a room.

Personally I don't get this but that's my reading of it.

But I'd be less likely to rely on anything citizen's advice says on this over the RTB.
 
T McGibney said:
And I'm most certainly not confused, but merely trying to help you. Silly me for breaking the first rule of AAM - never bother responding to a query from a new poster who doesn't use the word please.
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Since when is that a rule of AAM?
 
T McGibney said:
It's a rule of mine, and generally holds.
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Really ! I've never noticed such a thing before. You're gas. And it's a bit mean to a new poster in any case.

I think I might send off the query myself to the RTB just for the hell of it. I once did one to revenue and it took them months to get back to me.
 
Bronte said:
That rent a room would be if it were your home. Your sole residence.
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On the piece I inserted above, it clearly states you don't have to own the home, you can be a tenant and then sublet with the agreement of the landlord.
 
Bronte said:
Really ! I've never noticed such a thing before. You're gas. And it's a bit mean to a new poster in any case.
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I took time yesterday to explain an arcane technical point to her, in the hope of saving her money, and she twice accuses me of being confused.
 
Bronte said:
Really ! I've never noticed such a thing before. You're gas. And it's a bit mean to a new poster in any case.
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Thank you for looking out for a new poster. I'm not replying to that person again!!! I am a very fragile person, quite sensitive really.
 
I just rang the RTB, if renting to a son, regardless of whether I charge rent or not and if I am not residing in the property, I do not have to register with RTB, I will be emailing this query so I will have it in writing,
 
RedOnion said:
Tommy was offering you tax advice yesterday. Surely PRTB aren't telling you whether or not you can claim you mortgage interest against tax?
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They clarified I do not have to register with them, I know I can't claim tax relief if not registered,
 
Clare12 said:
I just rang the RTB, if renting to a son, regardless of whether I charge rent or not and if I am not residing in the property, I do not have to register with RTB, I will be emailing this query so I will have it in writing,
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LOL. Don't forget to ask them if it's ok for your son to have someone else staying with him. It would be very helpful to hear the RTB reply.
 
Ok, I am going to email as will need written confirmation, will post back here when I get a reply.
 
Clare12 said:
They clarified I do not have to register with them, I know I can't claim tax relief if not registered,
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You know wrong. If there is no registration requirement, the restriction under TCA 1997 s97(2I)(a) clearly doesn't apply.

https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part04.pdf

Restriction of interest relief With effect from 1 January 2006 relief is denied in respect of interest on borrowed money applied in the purchase, improvement or repair of rented residential properties unless the person making the claim can show that the registration requirements of Part 7 of the Residential Tenancies Act 2004 have, in the year for which the relief is claimed, been complied with in respect of all tenancies which existed in relation to that premises in that year.
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Ok, have been on to the live chat with RTB, there is no requirement to register with them if there is no lease in place, which there won't be, regardless of whether he is paying rent or living there rent free, am aware of the gift threshold if rent free, also asked if he might rent a room in the future and if this would alter the requirement for registering, she referred to this as a licence, i think this is where the rent a room relief might come in, she asked if I would be getting rent payment, I confirmed no, it would be paid to my son, in this case no requirement to register as there is no lease in place and my son would be renting the room under licence, I have email confirmation of this chat. She also confirmed I could not avail of mortgage interest unless the person/people renting were HAP or rent allowance recipients.
 
Clare12 said:
I am not supposed to be replying to you but anyway, we will beg to differ on earlier posts.
I had read up on the 2004 act and was wondering the same,
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Again, for the nth time, you need professional advice to clarify this if you're not 100% sure of it. It will be well worth it.
 
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