ivorystraws
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(a) Any period(s) of absence up to a maximum of 4 years during which the individual could not live in the house - (i) because of the situation of his or her place of work, or (ii) because of any condition reasonably imposed by his or her employer requiring him or her to live elsewhere for the purpose of his or her employment.
It's a fair point.In light of NRC's link above I 'umbly withdraw the jam remark above your honour.
There is Revenue guidance here that clarifies that use of the rent-a-room scheme does not eliminate PPR relief.
As for the use of rental tax credit you can qualify for PPR relief for:
So it would be incumbent on you to prove that you were obliged to live elsewhere in 2005 and 2007 by your employer. Probably difficult at this remove.
In your shoes I would probably exclude those two years from the PPR relief on a pro rata basis. 2/17*capitalgain*33%*50% is just not going to be very much much money in the scheme of things and it would rule out further Revenue scrutiny.
I rented rooms to students many years ago.Thanks @NoRegretsCoyote I agree that it would be near impossible to prove anything dating back 17 years but like you said, I can simply exclude those years from the PPR relief on a pro rata basis as it won't be very much at all.
With respect to the rent a room scheme, I understand that this won't affect PPR entitlements but my question on this is whether I am liable for tax payable on any income received from tenants (since it hadn't been reported to the Revenue?
I rented rooms to students many years ago.
My understanding that in order to claim the rent a room relief (although letting to students does defer a little) firstly you must declare it on your Tax Return and secondly you have only 4 years to claim back this relief.
Also, I understand you must be residing in the property at the time (e.g. the place where friends and family would be most likely to find / contact you), which you were apart from the 2 years you were renting, although your brother was living there.
Not sure how understanding the Revenue will be as you were entitled to the relief but failed to declare the income.
There's nothing to stop you declaring it now.Yea, I can declare the rental income from 2018 to 2021 (as that's when it ended) online. Then there's just the years from 2012 to 2017 (inclusive) of when I rented a room and complied with the rules outlined for the scheme but didn't declare that income.
Although the relief applies automatically, the rent-a-room scheme does not remove the obligation to make a tax return
That is excellent information and obviously something I wasn't aware of.There's nothing to stop you declaring it now.
The relevant Tax & Duty Manual makes no reference to a time limit for claiming Rent a Room relief, and says it applies automatically once the criteria are met.
I assume you'll have to file tax returns for each year? Depending on the categorisation and nature of the Revenue query, it may be a good idea to get proper professional advice on it. From what I've seen you've done little wrong, at worst claimed a minor tax credit in error on two occasions circa 15 years ago, but it might be worth forearming yourself on the off-chance that it gets nasty.That is excellent information and obviously something I wasn't aware of.
How do I go about declaring the rental revenue for those years now i.e. is it enough for me to respond to the Revenue with reference to the Tax & Duty Manual or would they prefer if I completed on some form?
I assume you'll have to file tax returns for each year? Depending on the categorisation and nature of the Revenue query, it may be a good idea to get proper professional advice on it. From what I've seen you've done little wrong, at worst claimed a minor tax credit in error on two occasions circa 15 years ago, but it might be worth forearming yourself on the off-chance that it gets nasty.
An accountant should be fine.Professional advice is probably best here. In my specific case, are you talking about a tax advisor or an accountant?
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