Clare Daly (Dublin North, United Left)
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83. To ask the Minister for Finance if he will ensure that persons who rent a room in their primary residence are exempt from tax on income generated, according to the limits set, regardless of the basis upon which they rent that room, and whether they are involved with Airbnb or other similar networks. [33575/15]

Michael Noonan (Limerick City, Fine Gael)
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Rent-a-room relief is provided for in section 216A of the Taxes Consolidation Act (TCA) 1997. Under that section, sums arising to an individual in respect of the letting of a room or rooms as residential accommodation in his or her home and from meals or other services supplied in connection with the letting, are exempt from income tax where they are below the annual limit for the tax year in question (€12,000 for 2015) and certain other conditions are satisfied.

The purpose of the relief is to increase the supply of rental accommodation by incentivising homeowners to rent out rooms in their principal primary residences to individuals on a residential basis, that is where the individuals are effectively using the room(s) either on its own or in conjunction with other parts of the residence as their home. It is not, and never was, intended to apply to income arising from the provision of guest accommodation to occasional visitors.

The Revenue operational manual has clearly stated that income from the provision of accommodation to occasional visitors for short periods does not qualify, as visitors use the accommodation as guest accommodation rather than for residential purposes.  Following the entry of AirBnB and others into the short-term accommodation market, Revenue issued an eBrief in February 2015 which amended the operational manual to further clarify that accommodation provided through online booking sites is considered to be guest accommodation. A copy of the operational manual can be accessed on the Revenue website at: .

It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.