Dáil Éireann Debate, Monday - 11 September 2023
478. Deputy Patrick Costello asked the Minister for Finance if his Department is conducting any performance review for the rent-a-room relief scheme to outline the effectiveness of the scheme, issues arising from its implementation and exploring whether there is any benefit from the scheme to the wider issue of student accommodation. [38818/23]
View answerThe rent-a-room scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence as residential accommodation in order to bring about an increase in the availability of rental accommodation.
In accordance with section 216A of the Taxes Consolidation Act 1997, an individual who lets a room or rooms in her or his sole or main residence as residential accommodation may be exempt from income tax, PRSI and USC in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied with the letting does not exceed the threshold for the year in question, which is €14,000 for 2023. Individuals who let a room/s to students and meet the above eligibility criteria are able to avail of rent a room relief.
Although the income is exempt it must be included in the individual’s tax return for the year in question. This relief does not apply to companies or partnerships.
Initially, in 2001, the upper income threshold was set at £6,000 but this has been increased several times over the intervening period (most recently in Finance Act 2016) to €14,000.
The scheme is not currently the subject of a review by my Department of type suggested by the Deputy.
