Dáil Éireann Debate, Tuesday - 6 October 2015
282. Deputy Brendan Griffin asked the Minister for Finance if he will liaise with the Revenue Commissioners on a matter (details supplied) regarding concerns that legislation is being incorrectly interpreted; and if he will make a statement on the matter. [34600/15]
View answerSection 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, but not exclusively, for the student sector. It is available in all parts of the country. Extending the scheme to allow its use for short term guest accommodation, would not contribute to the achievement of the socio-economic objectives for which the scheme was introduced.
I would point out that 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.
Any question relating to the charging of income tax is a matter for Revenue. In this regard, the Commissioners advise that property owners who receive income from the provision of occasional guest accommodation should make a return of their taxable profits to Revenue and pay the resultant income tax, if any, under self-assessment rules in the normal manner.
