Eamon Ryan (Dublin Bay South, Green Party)
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163. To ask the Minister for Finance if he has considered extending similar tax treatment to persons that are renting out rooms in a house they are living in through a company (details supplied), as distinct to renting out an entire home, to persons that rent out rooms for students; and if he will make a statement on the matter. [11780/17]

Michael Noonan (Limerick City, Fine Gael)
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It is not fully clear from the Deputy's question as to the specific aspect of the tax code that his enquiry relates to. However, I assume that the Deputy is referring to the Rent-a-Room scheme, which is provided for in Section 216A Taxes Consolidation Act 1997.  This scheme was introduced with the aim of increasing the availability of rented residential accommodation. The room or rooms must be used for the purposes of residential accommodation, i.e. the occupants are effectively using the room on a long-term basis, either on its own or in conjunction with other parts of the residence, as a home. The relief does not apply to rooms that are used for business purposes.

Under the scheme, sums arising to an individual in respect of the letting, for residential purposes, of a room or rooms in his or her home, including, for example, sums arising from lettings to students for an academic year, and the provision of meals or other services supplied in connection with the letting, may be exempt from income tax where they meet the conditions of the scheme and where the individual's total gross income from such letting(s) is below the annual limit for the tax year in question. This limit was increased to €14,000 with effect from the 2017 tax year.

Income from the provision of accommodation to occasional visitors for short periods, including, for example, where the accommodation is provided through online accommodation booking sites, does not qualify for relief as the visitors use the accommodation as guest accommodation rather than for residential purposes. The tax treatment of such income is dependent on the nature of the accommodation irrespective of whether or not this is arranged through an internet letting platform or other form of intermediary.

I am not favourably disposed to the extension of rent-a-room relief to income earned from the provision of accommodation through platforms such as the company in question, I am mindful such an extension could lead to unfair competition in the guest accommodation sector generally, by placing B&B and guest house operators who provide accommodation in the course of a trade at an unfair disadvantage.