Tenants Tax Relief for short term rental

[HelterSkelte]

Does anyone know if a tenant can claim tax relief for short term lettings? I am planning on renting an apartment for one week. I was reading this page ([broken link removed]) and it looks like I should be able to claim back 20% of the rental in tax credits. The landlord disagrees and is trying to talk me out of claiming. She says I don't qualify as she is letting the apartment out as a "tourist letting". I reckon she is probably not registered with the PRTB and not paying tax. Am I right or is there some loophole for landlords letting their property to "short term" tennants?

Thanks.

 

[ClubMan]

Does anyone know if a tenant can claim tax relief for short term lettings? I am planning on renting an apartment for one week. I was reading this page ([broken link removed]) and it looks like I should be able to claim back 20% of the rental in tax credits.

That is not correct. The first 20% in that link refers to the tax that an agent or the tenant must deduct from rent payable to a non Irish resident landlord and which must be remitted to Revenue - i.e. 20% of the total rent amount. This has nothing to do with [broken link removed] on the rent payable by a tenant and which is granted at 20% (standard rate) up to the limits listed in the previous link - e.g. for a single person under 55 a maximum of €1,800 @ 20% = €360 p.a. or €30 p.m. This is explained in the Rates section of the CitizensInformation article but the limits described are out of date and have not been updated for Budget 2007. I'm not aware of any time limit on claiming rent relief.

 

[HelterSkelte]

That is not correct. The first 20% in that link refers to the tax that an agent or the tenant must deduct from rent payable to a non Irish resident landlord and which must be remitted to Revenue. This has nothing to do with [broken link removed] on the rent payable by a tenant and which is granted at 20% (standard rate) up to the limits listed in the previous link. This is explained in the Rates section of the CitizensInformation article. I'm not aware of any time limit on claiming rent relief.

Are you sure? I think the 20% refers to both instances, i.e. landlore resident in Ireland and non-resident in Ireland. It looks like if the landlord is resident they you get a receipt for the rent paid and submit it with the Rent 1 form to the revenue. They then allow you tax credits up to the cutoff. If landlord is non-resident you deduct 20% from the rent before you pay them.

 

[Newby]

The residence has to be your main residence for the year of assessment and to say that it was your main residence seems to be pushing it a bit. 1 week out of 52 is hardly what i'd call a main residence.

 

[ClubMan]

Are you sure? I think the 20% refers to both instances, i.e. landlore resident in Ireland and non-resident in Ireland.

No:

Landlords that live outside Ireland

If your landlord lives outside Ireland and you pay rent directly to them or to their bank account located in Ireland or abroad, you must deduct tax at the standard rate (20%) from the gross amount which you pay.

This relates to the requirement that somebody - the tenant if necessary - must deduct 20% from the rent payable to a non resident landlord and remit it to Revenue - i.e. they don't pocket it as some sort of rent relief.

Tax relief at the standard rate of 20% on private rented accommodation is available from 1 January-31 December 2006 as follows:

And this bit relates to the fact that the tenant can avail of tax relief at 20% on rent up to the limits specified.

These are two completely separate issues and a tenant does not get 20% relief on the full rent unless it happens to be at or below the limits listed in the Rates section.

In any case - regardless of what I said earlier - it looks like this may be a moot point for you judging by Newby's posts.

 

[HelterSkelte]

The residence has to be your main residence for the year of assessment and to say that it was your main residence seems to be pushing it a bit. 1 week out of 52 is hardly what i'd call a main residence.

Hmm good point, I didn't cop that. Thanks.

 

[Newby]

The landlord disagrees and is trying to talk me out of claiming. She says I don't qualify as she is letting the apartment out as a "tourist letting". I reckon she is probably not registered with the PRTB and not paying tax.

Talking someone out of claiming does sound a bit funny though. Tenants tax affairs should be none of the landlords business.

 

[ClubMan]

Where a tenant qualifies for rental tax relief it is none of the landlord's business and the tenant can/should just claim it even if the landlord balks at it.

 

[HelterSkelte]

Where a tenant qualifies for rental tax relief it is none of the landlord's business and the tenant can/should just claim it even if the landlord balks at it.

Yeah, but I require the landlords name, address and PPS number in order to claim.

 

[Newby]

Yeah, but I require the landlords name, address and PPS number in order to claim.

If you were in a situation where you can claim and the landlord does not provide you with an address or PPS number you should call Revenue. I know people who have claimed without their landlords PPS number and have received their credit.