Rent Tax Relief query

[mucker]

Hi,

Wondering if anyone can advise me on the following

Over the past 3.5 years I have paid approx €32K in rent. I sent off the tax relief form to claim tax back for 3.5 years but only received about €800 back. (not even 1 months rent)

Does this sound right? Sounds a little low to me.

I was living there with my fiance but did not mention she was living with me - I just claimed as if I was renting on my own. Maybe this had an affect?

Thanks

 

[ClubMan]

Over the past 3.5 years I have paid approx €32K in rent. I sent off the tax relief form to claim tax back for 3.5 years but only received about €800 back. (not even 1 months rent)

Does this sound right? Sounds a little low to me.

It may not be incorrect. What did you pay in each year 2005, 2006 and 2007 presumably?

The 2007 and 2008 rates of relief are here:

[broken link removed]

So in 2007 the maximum was 20% of €1,800 for a single person under 55 which means €360 for that year.

I was living there with my fiance but did not mention she was living with me - I just claimed as if I was renting on my own. Maybe this had an affect?

Do you mean that you were attempting to evade tax by claiming tax relief in respect of your girlfriend's rent and not just your own?

 

[mucker]

Hi Clubman,

Yes it was 2005, 2006 and 2007.
No I was not trying to evade tax by claiming tax relief in respect of my girlfriend's rent. We just didnt get around to completing a form for her.

Would it have made a difference if we did?

 

[ClubMan]

Hi Clubman,

Yes it was 2005, 2006 and 2007.

So how much rend did you pay in each of these years? As far as I can see from www.revenue.ie the maximum relief available for a single person under 55 would have been:

2005: €1,500 @ 20% = €300
2006: €1,650 @ 20% = €330
2007: €1,800 @ 20% = €360

For 2008 the maximum relief is €2,000 @ 20% = €400.

Where does the 3.5 years come in? Half of 2008 or half or 2004?

No I was not trying to evade tax by claiming tax relief in respect of my girlfriend's rent. We just didnt get around to completing a form for her.

Would it have made a difference if we did?

She is entitled to relief on her own rent.

 

[mucker]

It was half of 2004.
By the looks of the figures you have quoted the amount I got back appears not far off.

If it is €1,800 @ 20% etc then I take it it wouldnt have mattered if I declared I paid just my half (€16K) or the full amount (€32K) - I would have received the same relief back anyway.

What I am getting at is - is it possible for my girlfriend to claim relief now on the amount she paid? bearing in mind that I had the full amount mentioned on the document I filled out and should have put half.

 

[ClubMan]

It was half of 2004.
By the looks of the figures you have quoted the amount I got back appears not far off.

If in doubt ask Revenue to explain the figures/calculation.

What I am getting at is - is it possible for my girlfriend to claim relief now on the amount she paid? bearing in mind that I had the full amount mentioned on the document I filled out and should have put half.

She cannot claim relief on the same money that you have already claimed relief on if that's what you're asking. If you claimed relief on rent that you did not actually pay yourself then you have made a fraudulent claim.