Section 216A Rent-a-room relief

(1) In this section-

“qualifying residence”, in relation to an individual for a year of assessment, means a residential premises situated in the State which is occupied by the individual as his or her sole or main residence during the year of assessment;

“relevant sums” means all sums arising in respect of the use for the purposes of residential accommodation, of a room or rooms in a qualifying residence and includes sums arising in respect of meals, cleaning, laundry and other similar goods and services which are incidentally supplied in connection with that use;

“residential premises” means a building or part of a building used as a dwelling.

(2)(a) This subsection applies if-

(i) relevant sums, chargeable to income tax under Case IV or Case V of Schedule D, arise to an individual (regardless of whether the relevant sums are chargeable to income tax under Case IV or Case V or under both Case IV and Case V), and

(ii) the amount of the relevant sums does not exceed the individual’s limit for the year of assessment.

(b) In ascertaining the amount of relevant sums for the purposes of this subsection no deduction shall be made in respect of expenses or any other matter.

(c) Where this subsection applies the following shall be treated as nil for the purposes of the Income Tax Acts-

(i) the profits or gains of the year of assessment, and

(ii) the losses of any such year of assessment,

in respect of relevant sums arising to an individual.

(d) Where an individual has relevant sums chargeable to income tax under Case V of Schedule D and an election under subsection (3)(a) has not been made, an allowance under section 284, which would on due claim being made be granted, shall be deemed to have been granted.

(3)(a) Subsection (2) shall not apply for a year of assessment if an individual so elects by notice in writing to the inspector on or before the specified return date for the chargeable period (within the meaning of section 959A]).

(b) An election under this subsection shall have effect only for the year of assessment for which it is made.

(3A) Subsection (2) shall not apply for a year of assessment where the relevant sums arising to the individual are received from a child of the individual or of the civil partner of the individual.

(3B)(a) Subsection (2) shall not apply for a year of assessment to relevant sums arising to—

(i) an individual, or

(ii) a person connected with the individual,

where the individual is an office holder, or employee, of—

(I) the person making the payment, or

(II) a person connected with the person making the payment.

(b) This subsection shall apply irrespective of whether the relevant sums are paid directly or indirectly by the person referred to in clauses (I) and (II) of paragraph (a) to the individual or to a person connected with the individual.

(3C) (a) In this subsection, “relevant person” means a person who is resident or ordinarily resident in the State and is incapacitated by reason of mental or physical infirmity.

(b) Subject to paragraph (c), subsection (2) shall not apply for a year of assessment to that part of the relevant sums arising to an individual in respect of the use by a person for the purposes of residential accommodation of a room or rooms in a qualifying residence where the person uses the room or rooms for a period which does not exceed 28 consecutive days.

(c) Paragraph (b) shall not apply where the person using the room or rooms concerned—

(i) is a relevant person,

(ii) uses the room or rooms for a minimum of 4 consecutive days per week for not less than 4 consecutive weeks, or

(iii) is receiving full-time or part-time instruction at a university, college, school or other educational establishment in the State.

(d) Where—

(i) the period for which a room or rooms in a qualifying residence is or are used by a person for the purposes of residential accommodation does not exceed 28 consecutive days, and

(ii) the individual to whom relevant sums have arisen in respect of that use claims that subparagraph (i), (ii) or (iii) of paragraph (c) applies,

the Revenue Commissioners may require the individual to provide proof supporting such claim.

(4) The provisions of the Income Tax Acts relating to the making of returns shall apply as if this section had not been enacted.

(5) Subject to subsections (6) and (7), the limit of an individual referred to in subsection (2) is €14,000.

Amendments

Finance Act 2001 section 32(2)(b).

(7) Where relevant sums arise to more than one individual in respect of a qualifying residence the limits referred to in subsections (5) and (6) shall be divided by the number of such individuals.

(8) Where subsection (2) applies, the receipt of relevant sums shall not operate so as to restrict or reduce any entitlement to relief under section 244 or 604.