Seán Kenny
Question:265. Deputy Seán Kenny asked the Minister for Finance his plans to promote the rent-a-room scheme in order to encourage homeowners to avail of it; and if he will make a statement on the matter. [26302/15]
View answerTuesday, 30 June 2015
Questions (265)
Written answers
Section 216A of the Taxes Consolidation Act 1997 provides for the rent-a-room scheme. This scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence in order to bring about an increase in the availability of rental accommodation, particularly for the student sector.
The scheme provides an exemption from Income Tax, PRSI and USC on rent received where a person rents out a room or rooms in his or her principal private residence and the rent received does not exceed €12,000 per year. This was increased from €10,000 in Budget 2015.
In order to qualify for the exemption, it is necessary for the residential premises to be situated in the State and occupied by the individual as his or her sole or main residence during the tax year.
The relief only applies to individuals. It does not apply to companies or partnerships. In addition, an individual cannot avail of the relief in respect of payments for accommodation in the family home by a child of the individual. There is no restriction where rent is paid by other family members, for example, nieces or nephews.
The latest figures available relate to the tax year 2012 when the cost of the relief was estimated at €5.9 million and was availed of by 4,070 claimants. The corresponding 2011 cost was €5.6m and was availed of by 3,920 claimants.
The deputy may wish to note that the Office of the Revenue Commissioners has published a guide to the income tax treatment of rental income, which includes details of the rent-a-room relief. This guide is available at: http://www.revenue.ie/en/tax/it/leaflets/it70.html.
Question No. 266 answered with Question No. 246.