Will Budget 2021 impact costs of importing?
Hi,
Will the new budget impact on importing a car from the UK, i.e. extra VRT and NOx charge?
Thomas Rooney (Clane)Oct 2020 Filed under: importing
Expert answer
Hi Thomas,
It certainly will.
The NOx levy calculation has been tweaked slightly, as detailed in our How Much VRT is Paid in Ireland? feature, with the €15 per mg rate starting earlier on.
The changes to the VRT bands will also likely have an effect, but the largest change is the 'uplifting' of the CO2 rating to WLTP-equivalent values.
For a petrol car, the new CO2 rating = (old NEDC rating x 0.9227) + 34.554g/km
For a diesel car, the new CO2 rating = (old NEDC rating x 1.1405) + 12.858g/km
This will significantly raise the CO2 rating, putting the imported cars into a higher VRT band, with likely much higher costs.
We did such a calculation for another reader here if you're interested: Should I register my imported Mercedes now?
Can I pay a portion of the VRT?
Hi there,
In July I imported a 2019-reg car and was exempt paying VRT on it due to transferring residence back to Ireland. If I sell the car within one year I must pay the VRT - is the VRT due calculated on a set 12 months or whatever period less 12 months (i.e. so in November say nine months VRT)?
Joe
Joe Freeley (Mayo)Oct 2020 Filed under: VRT
Expert answer
Hi Joe,
I'm afraid Revenue is quite clear on this: "The VRT relieved becomes payable in full if you sell or dispose of the vehicle within 12 months following registration."
Should I buy an Opel Corsa-e before 2021?
I was going to switch to an EV in the New Year. Should I now bring this forward? Was looking at an Opel Corsa-e. I get that the VRT will reduce from 14% to 7%, but this will be outweighed by the loss of the €5,000 VRT rebate? And what of the €5,000 SEAI grant? Will that still be in the equation in the New Year?
Many thanks for your guidance.
Paul, Galway
Paul Greenstreet (Clifden)Oct 2020 Filed under: choosing new car
Expert answer
Hi Paul,
First up, we believe that the SEAI grant is not changing for 2021.
The €5,000 VRT rebate should still be in place for the Corsa-e, as the government announced that it would be 'tapered' for EVs with an OMSP (Open Market Selling Price) of over €40,000 - up to zero rebate for EVs with an OMSP of €50,000 or more.
Hence, it won't matter if you buy the Corsa-e now or in the New Year.
Will Budget 2021 reduce Tesla Model 3 price?
Will the budget VRT reduce the price of the Model 3 Tesla?
Bill O Riordan (Cork)Oct 2020 Filed under: VRT
Expert answer
Hi Bill,
No, we don't think it will. That has yet to be confirmed, but it looks like the dropping of the VRT rebate will not be offset by the reduction in VRT rate (from 14.0 to 7.0 per cent), so it could be a few grand more expensive.
Will my 2008 Focus tax change in Jan 2021?
Hi,
I bought a new Ford Focus 1.4 petrol in February 2008. Will my motor tax increase in the new motor tax scheme?
Maeve Liston (Limerick )Oct 2020 Filed under: taxation
Expert answer
Hi Maeve,
Assuming your car is taxed according to its engine size, then there will be no changes to its taxation from January 2021. If it's taxed according to its CO2 emissions, it's possible that there will be a small increase, but nothing drastic. We don't have the full details of the new motor tax scheme as yet.
Thoughts on importing my trike?
Hi,
I am planning to bring my Honda Goldwing Trike from the UK to Ireland. Firstly due to having a vehicle into the country and VRT exempt on transfer of residency (TOR), will I be able to bring my trike in exempt under the same TOR? If not and VRT has to be paid could you give an idea on how much this would be please? The Trike is 27 years old and the 1500 GL model.
Thank you.
Kevin Farrer (Foxford)Oct 2020 Filed under: importing
Expert answer
Hi Kevin,
According to the Revenue website, it does only refer to TOR applications in the singular (one vehicle) sense. It does not explicitly state that you can or cannot do this for multiple vehicles; however, my understanding is that it is a one-off thing. That said, with the age of the bike, the VRT should only amount to €185 to register it here in Ireland. Generally, trikes such as the Goldwing are registered as motorcycles.
How to change reg from UK to Irish?
Hi,
I recently bought a car from the UK, through an auction and obviously the car reg isn't Irish, it's British; where do I start in changing the whole process of the reg?
Arunas Daniel (Cavan)Oct 2020 Filed under: importing
Expert answer
Hi Arunas,
We're written a guide called Guide to importing cars from the UK to help people like you. You'll need to scroll down through half of it as you already have the car bought, but once you've read that, if you still have questions, feel free to come ask us for more assistance.
Could I insure an imported Jimny?
Hi,
I have a question in relation to the new Suzuki Jimny. From what I gather it is not being sold in Ireland for emissions reasons. However, if you were to import one from the UK and pay VRT etc would you be able to get Irish insurance? Is it road legal and all that?
Regards,
Robert, Cork
Robert Hincks (Cork)Oct 2020 Filed under: insurance
Expert answer
Hi Robert,
Getting insurance will probably be slightly tricky just because there aren’t many Jimnys on the ground here, so it’s not a well-known model for Irish insurers from an actuarial point of view. Then again, it’s no GTI so it shouldn’t be too bad. As for road legality, it’s fine — the Jimny was homologated for Europe, so it’s perfectly legal here.
Is my car loan deductible against tax?
Hi,
As a sole trader I use my private car to do 30,000km a year. I’d like to change my car. If I take a loan out to purchase a car is a percentage of the monthly repayments deductible against tax and, if so, is there an upper limit or any drawbacks to doing this from a tax perspective, e.g. benefit in kind?
Many thanks
Robert Downer (Kilkenny)Oct 2020 Filed under: taxation
Expert answer
Hi Robert,
You should discuss this in more depth with a qualified accountant, but our understanding is that you cannot claim back the cost of buying your private car through the business. If the car is owned by the business and used exclusively for business use, that is a very different scenario, but it doesn't sound to me as if that's the case. If you go ahead with a private purchase of a car and the business is paying back the loan for you then we believe it would be seen as income and taxed accordingly.
However, as you can claim back all business-related expenses, you should keep a record of all motoring expenses, such as fuel, tax, insurance, repairs, etc. as you may be able to claim back a large portion of the costs if you use the car for business a large portion of the time.
As I said, it's best you talk this through with your accountant.
Thinking of buying a Volvo hybrid...
Hi.
I'm thinking of changing my Volvo. Can I ask how the XC40 and the XC60 plug-in hybrid models are set up? Am I correct in understanding that the electric motor and the petrol engine in the PHEV XC40 both drive the front wheels whereas in the XC60 the electric motor drives the rear wheels, so that four-wheel drive would be available when the electric and petrol engines are used in combination? Also, can I ask a separate question about "self driving". In the modern Volvos, they just talk of a lane keeping aid. Does this function in the same way as what was labelled Pilot Assist in models of a couple of years ago?
Thank you
Philip
Philip Donegan (Ballina)Oct 2020 Filed under: choosing new car
Expert answer
Hi Philip,
The T5 hybrid version of the Volvo XC40 (read our review of it here) is front-wheel drive only, as you said, while the XC60 T8 hybrid (here's our review of that) has an electric motor on the rear axle, giving the car all-wheel drive at times.
As to your second question, lane-keeping aid/assist technology is quite different to what Volvo calls Pilot Assist. The former can warn a driver if they're wandering out of lane and assist with a small steering correction if needs be, while Pilot Assist is an advanced for of active cruise control that also helps with steering inputs.
