CREED REMINDS RESIDENTS IN BALLINCOLLIG AND CARRIGROHANE OF THE RENT – A – ROOM SCHEME

Cork North West TD Michael Creed has reminded residents in Ballincollig and Carrigrohane of the availability of tax relief for householders who make rental accommodation available. Outlining details of the relief Deputy Creed said:
“This may be of significant benefit to householders in the immediate vicinity of UCC, CIT and third level colleges in Cork City. There is increased demand for affordable student accommodation and the rent a room scheme could prove mutually beneficial for home owners with vacant rooms and students alike.

“Section 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 for the student sector.

“The scheme provides an exemption from Income Tax, PRSI and USC on rent received where a person rents out a room or rooms in his or her principal private residence and the rent received does not exceed €10,000 per year.

“In order to qualify for the exemption, it is necessary for the residential premises to be situated in the State and occupied by the individual as his or her sole or main residence during the tax year. The relief only applies to individuals. It does not apply to companies or partnerships. In addition, an individual cannot avail of the relief in respect of payments for accommodation in the family home by a child of the individual. There is no restriction where rent is paid by other family members, for example, nieces or nephews.

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