Rent A Room Relief
If you rent out a room (or rooms) in your home to private tenants, the rental income you earn will be exempt from income tax, provided this income does not exceed a certain limit in a tax year. This is called the Rent A Room Relief.
Who can avail of the relief?
The Rent A Room Relief applies only to individuals. It does not apply to companies or partnerships.
However, it can apply where sums arise to more than one individual, for example, a
husband and wife, where there is no partnership.
Relief not due – Payments made by family members
An individual cannot avail of Rent A Room Relief in respect of payments for
accommodation in the family home by a child of the individual, or the individual’s
civil partner, regardless of whether or not the child has claimed tax relief on the rent
Since 1 January 2015, the annual limit on exempt income is €12,000. From 1 January
2008 to 31 December 2014 it was €10,000, and from 1 January 2002 to 31 December
2007 it was €7,620. Where more than one individual is entitled to the income, the
limit is divided equally between them.
For information and assistance on processing payroll for employees, speak to Niamh on +353 (0)41 68 63 000 or Request a callback from our Payroll Team today.
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