Rent a room Scheme

Hello,

I need advice.
The first is a careless mistake and not sure how to rectify. I am in the process of submitting my Yearly Tax Return to specify the Rent a room scheme for 2006 as I have been renting rooms in my residence and I have realised that I never submitted for 2005 which was an oversight on my part. What should I do.

The second thing is I have relocated to Europe in the last 2 months and the house is continued to be let, Hence the Rent a room scheme only applies for 11 months of 2006 - how should I handle this in my Tax Return.

Thirdly - now that I am permanently relocated, I will consider selling my Irish House. This is the only property I have. What Tax implications have I by doing this.

Hope someone can this Tax Ignorant Irish Girl

You cannot claim the rent a room scheme for a proportion of the year. Once your take goes above the limit in the calender year then you are liable for tax on the entire amount.

The rent received for the year is 7540 euro approx, 6380 of this was received while I was living in the house as my main residence and then I emigrated but tenants remain. What is my situation then as regards the Rent a room scheme??

Also what is my situation as regards Cpital Gains - that I have Emigrated

lipsy31 said:

The rent received for the year is 7540 euro approx, 6380 of this was received while I was living in the house as my main residence and then I emigrated but tenants remain. What is my situation then as regards the Rent a room scheme??

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Only owner occupiers can avail of the RaRS so you presumably no longer qualify and are, in fact, an investor now. See the Property Investment FAQ for summary information of what this means.

Also what is my situation as regards Cpital Gains - that I have Emigrated

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If you sell within 12 months of vacating the property as your PPR (Principal Private Residence) then no CGT liability arises. Otherwise some portion of any gain will be assessable for CGT. For example if you owned the property for 10 years, lived in it for 4 and rented it for the other 6 then ((6-1)/10) = 50% of any capital gain arising overthe full 10 years of ownership would be assessable for CGT.

If in doubt get professional advice.

Also, with regard to CGT, you will need to check the position in the country you are now resident in - there is likely to be a liability arising there, but probably a tax credit due in respect of any Irish tax paid.

Exact liability and rules will depend on the country you are now in.

You should seek professional advice in this regard also.