Rent Supplement & Rent-a-Room Scheme to member of family

[telsol]

By way of background - I am currently looking to buy a two bed property in Dublin. I would raise the mortgage using my income and my fathers income. I would pay the entirety of the mortgage.

I would avail of the "rent-a-room" scheme for first time buyers. I would like to be able to have my brother as tenant under that scheme. My brother is on disability benefit and entitle to rent allowance / supplement.

1. Is rent allowance available to tenants availing of accomodation under the Rent-a-room scheme?
2. Is rent allowance payable to a landlord who is the brother of the welfare recipient?
3. Is rent allowance payable to a landlord who is the father of the welfare recipient? (Again, while my father is listed as co-owner on the deeds to the property he has no equitable interest in the property having never contributed to any of the mortgage repayments or original deposit.)

 

[queenlex]

I tghink your bro would be way too close a relative to be allowed under rent a room, sorry.

 

[ClubMan]

If I recall correctly a Finance Act in recent years tightened up the rules relating to rent relief and/or rent a room relief such that one cannot generally (or ever?) avail of these when the transactions involve blood relatives. You should check this out and if necessary get professional advice.

 

[mtpmd]

I am aware of cases that 'blood relations' to the landlord are granted Rent Supplements subject to a bona fida tenancy agreement.

 

[CMCR]

"If you are renting a room in your home to your son or daughter you cannot get tax relief on the rental income." (Taken from Citizens Information).

As you intend to rent a room to your brother, I would advise you contact your local tax office for advice.

CMCR.