Holly Cairns (Cork South West, Social Democrats)
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315. To ask the Minister for Finance if he will ensure that the rent-a-room scheme is extended to allow households that have an available bedroom to rent it to an asylum seeker. [12786/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that the scenario outlined in the Deputy’s Question currently qualifies under the rent-a-room scheme.

Sums arising to an individual in respect of the letting for residential purposes of a room or rooms in an individual’s “sole or main residence”, including the provision of meals, cleaning, laundry or other services supplied in connection with the letting, may be exempt from income tax where the conditions set out in section 216A Taxes Consolidation Act 1997 are met.

To qualify for rent-a-room relief, the total payment for the letting must be below the annual limit, which is€14,000. In establishing whether the income exceeds the limit, the gross amount is taken into account and no deduction is allowed for any expenses that have been incurred in connection with obtaining the income. The relief does not apply to short term lettings of 28 or fewer days, except in certain defined circumstances (lettings to students, disabled individuals, and “digs” for a minimum of four consecutive days per week for at least four consecutive weeks). There are also restrictions relating to lettings to immediate family members and lettings paid for by the individual’s employer.

Further information on rent-a-room relief is available from the Revenue website at:www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/index.aspx .