Vol. 533 No. 6
185 Ms Shortall asked the Minister for Finance if recipients of the first-time buyers grant will be permitted to avail of the rent-a-room scheme in the first five years after completion of the purchase; and if he will make a statement on the matter. [9449/01]
The rent-a-room scheme provides that where a person rents out a room or rooms in his or her principal private residence, no tax is payable on the rent up to a specified amount. The specified amount for the nine month tax year commencing on 6 April this year is £4,400 and £6,000 for subsequent years. In order to qualify for the relief, it is necessary that the residential premises is situated in the State and is occupied by the owner as his or her sole or main residence during the year. Where a person receives rent which is not taxed by virtue of this section, it will not affect the person's entitlement to mortgage interest relief on the property or the capital gains tax exemption, which is available on the disposal of a principal private residence. Also, a stamp duty clawback will not arise for first time buyers.
I understand from the Department of the Environment and Local Government there is nothing in the first time buyers grant scheme to prohibit an individual from renting a room or rooms in his or her principal private residence.
