Garden Flat - Planning / Revenue Considerations

[Avaya]

Hi - new to the forum and this is my first post of what I think will be a few.

We have just purchased a house in Dublin which needs complete renovation. Thankfully the property has a large back garden and our architect has suggested a garden house at the bottom of it. In fact we have seen a few which he has designed and like the idea. It would be obviously wired, plumbed and well insulated - i.e finished to a very high standard. It would not however have a standalone meter etc - would be connected to the main house.

We will be obtaining full planning permision as we want it constructed with a mezzanine type floor which would accomodate a bedroom.

My questions are:

As we have good side access would it be possible to let this space to foreign students during the summer or list it on air bnb ?

As it is not connected to the house am I right to assume any income would be taxed at the marginal rate ?

Thanks a million in advance

 

[Leo]

Check out the planning permission granted to the units you have seen for the conditions attached. You can search online for these.

It's going back a few years now, but know of one instance where planning was granted for a granny flat to the rear of a residential property. The conditions attached stated that the flat must at all times be occupied by a member of the extended family, and it was explicitly prohibited to let it out. That quoted section 14.18.0 of the City Development Plan 1999.

 

[Avaya]

Thanks for that - jsut checked the planning notice and it would appear that it cannot be a separate residence and cannot be used for commercial purpose. It is regarded as another room of the adjoiing house and as such I think could be used as a b&b room etc.

If anyone else has any views they'd be apprecaited

 

[serotoninsid]

If it would be classed by planning as part of existing residence would that then entitle you to rent it out 7nder the rent a room scheme (which is non commercial in principal)?

 

[mandelbrot]

If it would be classed by planning as part of existing residence would that then entitle you to rent it out 7nder the rent a room scheme (which is non commercial in principal)?

The planning definitions have nothing to do with the tax treatment.

The relevant tax legislation is S.216A TCA 1997, and it defines as follows:

"qualifying residence", in relation to an individual for a year of assessment, means a residential premises situated in the State which is occupied by the individual as his or her sole or main residence during the year of assessment

"residential premises" means a building or part of a building used as a dwelling.

So unless the bit being let is physically part of the same building then it doesn't qualify for rent-a-room relief.