Michael Healy-Rae
Question:338. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the rent-a-room scheme; and if he will make a statement on the matter. [31342/15]
View answerTuesday, 22 September 2015
Questions (338)
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.
No legislative change has been made to the rent-a-room scheme to exclude AirBnB lettings. The provision of guest accommodation has never qualified for relief under this scheme. The Revenue operational manual has clearly stated that income from the provision of accommodation to occasional visitors for short periods does not qualify as visitors use the accommodation as guest accommodation rather than for residential purposes. Following the entry of AirBnB and others into the short-term accommodation market, Revenue issued an eBrief in February 2015 which amended the operational manual to further clarify that accommodation provided through online booking sites is considered to be guest accommodation. A copy of the operational manual can be accessed on the Revenue website at: http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf.