Pearse Doherty
Question:45. Deputy Pearse Doherty asked the Minister for Finance if a company (details supplied) can avail of the rent a room relief; and if he will make a statement on the matter. [42213/17]
View answerTuesday, 10 October 2017
Questions (45)
Written answers
The rent-a-room relief was introduced with the aim of increasing the availability of rented residential accommodation. The room or rooms must be used for the purposes of residential accommodation, i.e. the occupants are effectively using the room on a long-term basis, either on its own or in conjunction with other parts of the residence, as a home. The relief does not apply to rooms that are used for business purposes.
Under the scheme, sums arising to an individual in respect of the letting, for residential purposes, of a room or rooms in his or her home, including, for example, sums arising from lettings to students for an academic year, and the provision of meals or other services supplied in connection with the letting, may be exempt from income tax where they meet the conditions of the scheme and where the individual's total gross income from such letting(s) is below the annual limit for the tax year in question. This limit was increased to €14,000 with effect from the 2017 tax year.
Income from the provision of accommodation to occasional visitors for short periods, including, for example, where the accommodation is provided through online accommodation booking sites, does not qualify for relief as the visitors use the accommodation as guest accommodation rather than for residential purposes. The tax treatment of such income is dependent on the nature of the accommodation irrespective of whether or not this is arranged through an internet-letting platform or other form of intermediary.
I am not favourably disposed to the extension of rent-a-room relief to income earned from the provision of accommodation through platforms such as the company in question, I am mindful such an extension could lead to unfair competition in the guest accommodation sector generally, by placing B&B and guest house operators who provide accommodation in the course of a trade at an unfair disadvantage.