Moving to Oz while renting a room in my house

[crobo]

Hi,
I'm moving to Australia in October for a few years. My sister and her friend are going to be renting 2 rooms in my 3 bed house while I am away. I will keep on the 3rd room. Can I claim this extra income as tax free under the rent-a-room scheme. The house will be my main residence in Ireland. The total rental will be under the allowable 10,000 euro per year mark.

Second question: I have been living in the house for 5.5 years so am still due 1.5 years of first time buyers tax relief. My Irish company have asked me to stay working for them and have said they can either pay me into an Irish or Australian bank account so as I understand it I could be taxed either here or in Oz. If I opt to be paid here can I keep my first time buyers tax relief?

Crobo

 

[ClubMan]

I will keep on the 3rd room. Can I claim this extra income as tax free under the rent-a-room scheme.

I doubt it. You will not be an owner occupier for the year as far as I can see - unless you are being seconded in your job to work abroad as opposed to simply moving of your own volition. This question about owner occupier status while travelling for a few months/years has been asked several times but there has been no authoritative, catch all answer so you might need professional advice.

The house will be my main residence in Ireland. The total rental will be under the allowable 10,000 euro per year mark.

All irrelevant if, as I suspect, you cease to qualify for owner occupier status for the period. If this is the case then there are several possible tax and other implications which are covered in detail in many existing threads on this topic.

If I opt to be paid here can I keep my first time buyers tax relief?

Again this may be a moot point.

 

[ccbkd]

Hi,
I'm moving to Australia in October for a few years. My sister and her friend are going to be renting 2 rooms in my 3 bed house while I am away. I will keep on the 3rd room. Can I claim this extra income as tax free under the rent-a-room scheme. The house will be my main residence in Ireland. The total rental will be under the allowable 10,000 euro per year mark.

Second question: I have been living in the house for 5.5 years so am still due 1.5 years of first time buyers tax relief. My Irish company have asked me to stay working for them and have said they can either pay me into an Irish or Australian bank account so as I understand it I could be taxed either here or in Oz. If I opt to be paid here can I keep my first time buyers tax relief?

Crobo

I am in similar situation and found like Clubman tax legislation to be opaque in this area, I'd assume as emmigration is going to be quiet frequent over the next two years we will need something more definitive!

 

[csirl]

There are very few cases where people are forcefully (i.e. not voluntary) seconded abroad by their employer to the other side of the world for a few years. The only one I can think of is diplomats and even they do not have an exemption from paying tax if they rent out their Irish properties when abroad.

The law is quite clear. If you are living in Australia, then you clearly are not an owner/occupier of a property in Ireland, so the property is regarded as an investment property. You are not entitled to claim rent-a-room or any other owner-occupier benefits.