BIG-notorious
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Are you sure that will work? The Rent a Room tax exemption only works if the renter(s) occupy as a residence.like 6 to 8 weeks at a time. Long enough to take advantage of the rent a room scheme
Don't rental periods of 29 days or more qualify?Are you sure that will work? The Rent a Room tax exemption only works if the renter(s) occupy as a residence.
Minimum continuous letting period
From 1 January 2019, the relief does not apply to income arising from letting periods which do not exceed 28 consecutive days.
I think the minimum letting period is 28 days (and there are some exceptions even to that) so a letting for 6 to 8 weeks isn't inherently too short.Are you sure that will work. The Rent a Room tax exemption only works if the renter is occupying as a residence.
I'd be more worried about the underlying motive than any given minimum period specification that Revenue can retrospectively change at the drop of a hat.short enough that we're not permanently sharing our home with strangers.
The 28-day limit and the exceptions to it are set out in the primary legislation (Taxes Consolidation Act 1997 s. 216A(3C)) soI'd be more worried about the underlying motive than any given minimum period specification that Revenue can retrospectively change at the drop of a hat.
It does, I agree. And, yeah, they would be well-advised to document all their lettings in ways that will make a sceptical Revenue accept that these lettings are not remotely touristic.A pattern of say 20 successive occupancies over a 2 year period looks a lot more like 20 transient rentals than 20 separate individuals successively using the place as a residence esch for very short periods.
The 28-day limit and the exceptions to it are set out in the primary legislation (Taxes Consolidation Act 1997 s. 216A(3C))
A 6 to 8 weeks letting or licence term is worthless to someone who needs accommodation for a specific term or semester.their market is people who are looking for accommodation in connection with a specific course; a specific term or semester; a specific secondment or project, etc
The legislation allows a deduction for a 28-day letting (if the other conditions are satisfied). I don't think Revenue could rely on the Manual to justify refusing a deduction to which the taxpayer is entitled under the legislation, could they?I think you misread my earlier post. I specifically said that it's motive rather than occupancy period that is the key determinant here. And while the legislation does mention a 28-day limit, there is nothing to stop Revenue unilaterally qualifying that in a future Tax & Duty Manual update
I agree. I think the OP will have to be a bit flexible on this, and be open to letting for (still relatively short) periods that align to terms, semesters or other projects that renters need accommodation for.A 6 to 8 weeks letting or licence term is worthless to someone who needs accommodation for a specific term or semester.
I take your point about the location — letting for terms or semesters is going to be a lot easier if you are adjacent to educational institutions; letting for secondments if you are convenient to workplaces to which people get seconded, etc.And unless the property is in a location with very specific logistical advantages, I struggle to see how how a rent-a-room will be attractive to temporary occupiers on secondment or work projects, in which case the requirement that the place is the temporary occupier's PPR will be difficult to properly satisfy.
Correct. My bad.But I don't think there is any PPR requirement. The legislation just requires that the renter used the room for the purposes of residential accommodation;
If they contend the purpose of any particular stay to be other than occupation as a residence, they will observe that the 28-day minimum period is inapplicable in that case.I don't think Revenue could rely on the Manual to justify refusing a deduction to which the taxpayer is entitled under the legislation, could they?
Oh, sure. There are two separate requirements.If they contend the purpose of any particular stay to be other than occupation as a residence, they will observe that the 28-day minimum period is inapplicable in that case.
I think the minimum letting period is 28 days
The 28-day limit
Isn't it 29 days or longer?If the letting is for 28 consecutive days or longer
Subject to paragraph (c), subsection (2) shall not apply for a year of assessment to that part of the relevant sums arising to an individual in respect of the use by a person for the purposes of residential accommodation of a room or rooms in a qualifying residence where the person uses the room or rooms for a period which does not exceed 28 consecutive days.
Interacting with a person before they arrive doesn't guarantee they'll be a match unfortunately. The person who motivated me to post this thread just got the boot after a week— our desire for a little extra income isn't sufficient to convince us to allow someone unsuitable to remain in our home. It looks like this won't qualify for the rent a room scheme but does qualify for relief on my AVCs so we'll just be liable for PRSI and USC which I can live with.The system is a bit odd in that you don't get to meet the person until you commit which can be a problem if you get a bad tenant.
I think the OP will have to be a bit flexible on this, and be open to letting for (still relatively short) periods that align to terms, semesters or other projects that renters need accommodation for.
They want only short-term commitments (6-8 weeks) and I think the price of that is that they won't get back-to-back lettings; their market is people who are looking for accommodation in connection with a specific course; a specific term or semester; a specific secondment or project, etc. They'll have to let with start and end dates that suit the renters and their reasons for renting, which means there will be gaps between occupancies. Which, given that they don't want to be "permanently sharing our home with strangers", should suit them quite well. If they got four lettings a year I think they'd be doing quite well.
Again, to clarify: we're not looking to maximise income from the room, and back to back lettings are something we will actively avoid/reject. The money isn't actually needed, but every 6 week rental would shave a month or so off our mortgage repayment schedule without impacting our lifestyle which is quite comfortable (from our perspective at least; our 12 year old car probably makes many of our neighbours think we're paupers).I take your point about the location — letting for terms or semesters is going to be a lot easier if you are adjacent to educational institutions; letting for secondments if you are convenient to workplaces to which people get seconded, etc.
Really?this won't qualify for the rent a room scheme but does qualify for relief on my AVCs
Yes, it is. My mistake.Isn't it 29 days or longer?
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