Michael Healy-Rae (Kerry, Independent)
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77. To ask the Minister for Finance the status of Airbnb (details supplied); and if he will make a statement on the matter. [5056/16]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy asked about the rent-a-room relief, and I am advised by the Revenue Commissioners that rent-a-room relief is provided for in section 216A of the Taxes Consolidation Act (TCA) 1997. Under section 216A, 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, USC and PRSI where they are below the annual limit for the tax year in question (€12,000 for 2015 and 2016) and certain other conditions are satisfied.

The purpose of the relief is to increase the supply of affordable rental residential accommodation by incentivising homeowners to rent out a room or rooms in their principal private residence to individuals. It applies where an individual is effectively using the room either on its own or in conjunction with other parts of the residence, as his or her home. The relief is not, and never was, intended to apply to income arising from the provision of guest accommodation to occasional visitors.

It is also worth noting that profits arising from the provision by individuals of guest accommodation in their home are subject to tax, irrespective of whether such accommodation is provided in the manner described in the details supplied or through more traditional forms of service provision, such as a guest house or B&B. Where accommodation is provided on an occasional basis, as distinct from in the course of a guesthouse or B&B trade, the income arising is treated as miscellaneous income and expenses incurred directly in the provision of the accommodation, for example the cost of providing meals, light, heat or laundering costs, would be allowed to be deducted in computing the homeowner's taxable profits from that activity. A homeowner who is carrying on a trade of guest accommodation can avail of the normal trading deductions in computing his or her taxable profits.

Regardless, however, of whether guest accommodation is provided on an occasional basis or in the course of a trade, and whether it occurs in the manner described in the details supplied or through more traditional forms of service provision, any profits arising from such activity are chargeable to income tax, universal social charge and PRSI in the normal manner. In addition, there is no provision in the TCA 1997 which exempts such profits from income tax below an income limit.