Rent a room tax relief

[Lucy83]

My mother has a second house which my brother lives in rent free. Would he be able to rent out a room in this house and avail of the €14000 tax free allowance? He would be the one receiving the income just to help him keep the house. We would get him to declare this income but as long as he stays below that limit he shouldn’t owe any tax. Would this have any implications for my mum? I don’t want there to be any issues for her with revenue, so not sure if the easiest option is for her to declare the rent and just pay the tax on any income. It’s not very clear from revenues website.
Thanks for any help.

 

[ClubMan]

There may already be tax implications for your brother (Capital Acquisitions Tax or "gift" tax) and mother (CGT) by virtue of your brother living in the property rent free.

Free use of property and interest free loans

This page details the tax implications of free use of property and interest free loans

www.revenue.ie

As far as I know, your brother can avail of the rent a room scheme in the circumstances described. But, I am but a tax expert.

Rent-a-Room Relief

This page overviews rent a room relief.

www.revenue.ie

There are existing Askaboutmoney threads on this topic that might be worth searching for and reading.

 

[ThisisMax]

Yes he can avail of rent a room, does not need to own house but he does have to pay your mum market rent so essentially he would be using rent a room to pay his rent. If your mum is in the position to gift him 3k per year tax free she could also do that. Finally he should check insurance on house, its your mums so she should be insuring.