# Tax Relief on Rent



## indi.lady (9 Feb 2007)

I will be renting a room in an apartment, starting next week, and want to know if I can Claim tax relief on the rent I pay. I've read that relief is due at the standard rate of tax          (20%) for 2007 subject to the maximum limits. Can anyone clarify this matter for me? Thanks!


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## CCOVICH (9 Feb 2007)

Yes, you can claim tax relief at 20%.

Relief is due at the standard rate of tax (20%) subject to the following upper limits:
Single €1,650 
Married/Widowed: €3,300 
Both reliefs are doubled if you are over 55


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## indi.lady (9 Feb 2007)

so it doesnt matter how much you earn and anyone can claim this relief? Does it affect the landlord?


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## CCOVICH (9 Feb 2007)

No it doesn't matter how much you earn.

The landlord must be declaring the rental income to Revenue and registered with the PRTB AFAIK.


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## indi.lady (9 Feb 2007)

Thanks for the info!!


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## crescent (13 Feb 2007)

This is my first post so sorry if i get this wrong!

I've tried searching this forum but can't find the exact info I'm looking for.

My friend owns a house and my bf and I rent a room in it. We oay less than the €600/month that I think he is able to charge tax free.

I am interested in claiming tax relief for the rent I have paid so far (9mths)  but I want to know if this is going to cost him anything?

If anyone can help I would be very grateful.

Thanks in advance
nicola


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## ClubMan (13 Feb 2007)

nicola_mark said:


> My friend owns a house and my bf and I rent a room in it. We oay less than the €600/month that I think he is able to charge tax free.


€7,620 p.a. or €635 p.m. can be collected tax free under the rent a room scheme. Your friend must be an owner occupier renting a room or rooms to you both. If he is not or collects more than that amount then he becomes treated as a property investor and all rental income is assessable for income tax, SD clawback may apply, _CGT _may be an issue, _PRTB _registration is required etc.


> I am interested in claiming tax relief for the rent I have paid so far (9mths)  but I want to know if this is going to cost him anything?


 No.


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## Guest120 (13 Feb 2007)

It's also important to note that even though he is not liable to pay tax on it he must declare it.


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## Newby (13 Feb 2007)

CCOVICH said:


> Yes, you can claim tax relief at 20%.


I think this is provided that you are not connected with the person who is letting the room to you. I think there was a loophole closed off in the Finance Bill.



ClubMan said:


> €7,620 p.a. or €635 p.m. can be collected tax free under the rent a room scheme.


In other words if you and your b/f are paying €600 each for the room (or rooms) then such income will not qualify for the rent a room relief.


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## eiregal (21 Feb 2007)

> I think this is provided that you are not connected with the person who is letting the room to you. I think there was a loophole closed off in the Finance Bill.


 
Does this mean that you can't claim tax relief on 'rent' handed up to a parent weekly? A few friends have told me they've done this. I rang the tax office, the first person I spoke to told me 'No' straight out. The second person I spoke to told me I could claim for 2003 to 2006. Does anyone have any experience of this?


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## ClubMan (21 Feb 2007)

There are a few existing threads dealing with this specific situation that you should be able to find using the search. There was some confusion about what used to be allowed and potential changes in how _Revenue _deal with this now possibly by disallowing relief in such cases.


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## Satanta (21 Feb 2007)

CCOVICH said:


> The landlord must be declaring the rental income to Revenue and registered with the PRTB AFAIK.


Just for clarity, you can claim the tax relief even if the landlord isn't registered. The form asks for the landlords PPS number, which they (probably) won't supply if they are not registered/declaring rental income. Simply send in the form without the PPS no. and it will still be granted.

Revenue use this system as a way to help catch non compliant landlords. The landlord will possibly/probably be flagged for (future) investigation (for non tax complaince) as a result, but that isn't really the concern of the tennant.
(If a landlord did refuse to provide a PPS number I'd take care to keep evidence of rent paid to the landlord. They may try and claim that they never received any rent from you during that period if Revenue later challenged them on it [maybe keep come mail to you at that address too as proof of occupancy])


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## Dreamerb (21 Feb 2007)

I don't think an owner occupier is obliged to register with the PRTB if they are renting under the rent a room scheme. (Nearly sure on this, but too busy and lazy to research it!)

You can also claim the relief even if the landlord doesn't supply a PPS number - Revenue have ways and means of tracking these things. 

However, as previous posters have pointed out, if your friend is using the rent a room scheme, he must declare the income whether or not it's taxable. If he's wise, he'll have set the rent so he doesn't exceed the threshold, otherwise the entire sum is taxable at his marginal rate of tax.


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## ClubMan (21 Feb 2007)

Dreamerb said:


> I don't think an owner occupier is obliged to register with the PRTB if they are renting under the rent a room scheme.


They're not.


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## gebbel (25 Feb 2007)

My friend is a Polish national who has been living in Ireland for 3 years now. I have told her that she can claim rent relief for each year. The problem is that her ex-landlord will not give her his PPS number or home address (as is required for the RENT1 application form). Can rent relief be claimed in the absence of those details, or could she submit his name and rented address only?

Thanks


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## CCOVICH (25 Feb 2007)

gebbel said:


> My friend is a Polish national who has been living in Ireland for 3 years now. I have told her that she can claim rent relief for each year. The problem is that her ex-landlord will not give her his PPS number or home address (as is required for the RENT1 application form). Can rent relief be claimed in the absence of those details, or could she submit his name and rented address only?
> 
> Thanks



Yes, she can. Tell her to call the Revenue directly and they will assist her in making the claim.


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## gebbel (25 Feb 2007)

Satanta said:


> Just for clarity, you can claim the tax relief even if the landlord isn't registered. The form asks for the landlords PPS number, which they (probably) won't supply if they are not registered/declaring rental income. Simply send in the form without the PPS no. and it will still be granted.


 
But the form also asks for the landlord`s home address? What if he will not give this also?


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## CCOVICH (25 Feb 2007)

gebbel said:


> But the form also asks for the landlord`s home address? What if he will not give this also?



It doesn't matter.  If your friend is having problems she should call the Revenue.


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