Dáil Éireann Debate, Tuesday - 21 March 2023
316. Deputy Joe Flaherty asked the Minister for Finance if, following the Advisory Group on the Provision of Support including Accommodation to Persons in the International Protection Process, the rent-a-room scheme can be expanded to allow households to rent the room to an asylum seeker. [12884/23]
View answerI am advised by Revenue that the scenario outlined in the Deputy’s Question currently qualifies under the Rent-a-Room scheme.Sums arising to an individual in respect of the letting for residential purposes of a room or rooms in their “sole or main residence”, including the provision of meals, cleaning, laundry or other services supplied in connection with the letting, may be exempt from income tax, USC and PRSI on that rental income where the conditions set out in section 216A Taxes Consolidation Act 1997 are met.To qualify for Rent-a-Room relief, the total payment for the letting must be below the annual limit, which is €14,000. In establishing whether the income exceeds the limit, the gross amount is taken into account and no deduction is allowed for any expenses that have been incurred in connection with obtaining the income.
The relief does not apply to short term lettings of 28 or fewer days, except in certain defined circumstances (lettings to students, disabled individuals, and “digs” for a minimum of four consecutive days per week for at least four consecutive weeks). There are also restrictions relating to lettings to immediate family members and lettings paid for by the individual’s employer.
Although the Rent-a-Room relief applies automatically, the scheme does not remove the obligation to include this rental income on a tax return. An individual letting a room in their home in under the Rent-a-Room scheme and who is required to submit an annual return of income to Revenue must enter the amount of exempt rental income in the ‘Exempt Income’ section of their return.Further information on Rent-a-Room relief is available from the Revenue website at:www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx .
