GF moving into apartment

woodseb

Registered User
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88
hi, my girlfriend plans to rent her 1-bed apartment and move into my 2-bed. i think we've sussed the implications with regard to stamp duty, CGT etc on her side but what are the implications for me. She'll obviously be helping with the mortgage but does this need to be declared or can i just have her down as a rent-a-room scheme?

thanks
 
I don't think that you can avail of the rent a room scheme when you are cohabiting.
 
I don't think that you can avail of the rent a room scheme when you are cohabiting.

so does she have to be on the mortgage or is there some halfway house between that and renting?

is there a penalty for not declaring?
 
I'd be interested to know how the Revenue would monitor this? Hold a glass up to the bedroom door perhaps?
It's not up to Revenue to monitor it - it's up to individuals to be honest and compliant in their dealings with them. Obviously there are innumerable ways to evade tax but I think it's a given around here that we assume that people are playing by the rules...

As I said I don't know for sure that you cannot avail of the rent a room scheme here but I suspect that you cannot. Especially since that possibility was closed off for, say, children living at home and paying housekeeping/rent to the parents a while back. On that basis I presume that rent a room requires that the tenant is at "arm's length" and not part of the family or of a couple.
 
I'd be interested to know how the Revenue would monitor this?

Maybe no way to monitor it per se but God forbid, in the event of an acrimonious relationship breakdown, there could be tax issues re: inappropriate use of Rent a Room scheme if this was brought to Revenue attention by an aggrieved party
 

It's hard to know...thinking about it I'd imagine a co-habiting couple can avail of the rent a room scheme. After all, from a tax point of view a co-habiting couple are completely unrelated and treated as strangers. Children on the other hand are treated differently. I mean, if one party owns the house what is the actual relationship? They're only dating when all's said and done.
 
Maybe no way to monitor it per se but God forbid, in the event of an acrimonious relationship breakdown, there could be tax issues re: inappropriate use of Rent a Room scheme if this was brought to Revenue attention by an aggrieved party

exactly, i have no intention of evading tax, but equally i'd prefer not to have to go through the process of putting her on the mortgage deeds
 
Probably best to get professional advice unless something on Revenue's website clarifies the matter?
 
Probably best to get professional advice unless something on Revenue's website clarifies the matter?

Sound advice...in my experience it's best to go straight to the Revenue and ask them about black and white issues like this, as in "can we do this?" Personally I obtain professional advice when it's more of a grey area, more technical, or the amounts involved are large.
 
The Revenue do not require an "arm's length" relationship to avail of the rent a room scheme, but they have specifically disallowed the relief in the case of a parent-child relationship.

However, on the non-tax side of things, you should talk to your solicitor about how to structure this to ensure your girlfriend does not get rights over your property.
 
would second Nige's post cover all bases incase you guys break up (sorry!) down the line.
 
I wonder if the couple were a same sex couple would this have any implications on how revenue would treat it? As it stands, the revenue does not recognise same sex marriage so presumably they would view the above transactions involving same sex couples as 'arms length transactions'...
 
Would there be stamp duty issues for you if she is going to be paying you rent? If ye are engaged it might change things re her rights to claim an interest in your apartment.
 
 
Didn't realise that an engagement would be considered the same as being married.

Many people find that out the hard way.

The relevant legislation is the 1981 Family Law act which states:
 
Nige, thanks for that, all very intersting. As they say, you learn something new every day . !
 
http://www.irishstatutebook.ie/1981/en/act/pub/0022/print.html
[broken link removed]

Some light reading in above re: Engagements - there's alot more to them then the DIAMOND !!

exactly, i have no intention of evading tax, but equally i'd prefer not to have to go through the process of putting her on the mortgage deeds

If he puts her on the deeds - would that be the same as selling a share in his apartment - hence Stamp duty issues.
As Clubman says it might be best to get some professional advise.