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Hi Harry,

Probably not, but I think the best person to ask is your accountant. Theoretically, the exemption from VRT for a change of address is a personal exemption, not a business exemption. It’s there so that someone genuinely moving to Ireland from another country can bring their car with them without incurring extra expense. You’re talking about the transfer of a company asset from one market to another, so it’s more than likely not going to be exempt, but as I say, your accountant should be able to give you a more precise answer. 

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Hi Paul,

A very tricky one, and as ever with Irish insurers, you’re quickly going to run up against a brick wall of intransigence. My best advice would be to get in touch with a good local insurance broker, as they can often find ways around issues such as this, and can sometimes track down policies that mere mortals cannot find.

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Hi Philip and thanks for this,

You make some good points here, but the main one I'd like to focus on is the uncertainty. It is, without a doubt, reducing car sales right now, as people don't know what to do, and all we can do is present the facts. They are this:

1 - There are many motorists in Ireland for which there is no economic alternative to a diesel car. Those that travel long distances day in, day out, could not use an electric car. Plug-in hybrids would be useless to them as well as they only return good economy when regularly charged up. The latest non plug-in hybrids are more economical than ever on a long run, but still not as cheap to fuel as a good diesel. And let's not forget, the majority of drivers are buying used, so there's very little choice in the used market for anything other than conventional diesel or petrol.

2 - For another large number of Irish motorists, petrol power would be perfectly fine. We've been saying for years that too many people have diesel cars because that became the default after 2008. Regardless of air quality and health issues, diesels come with higher maintenance costs, especially if they aren't used at higher speeds regularly.

3 - It seems to have been lost in the conversation that the diesel bans being discussed are not for all diesels, but for older diesels that emit much higher levels of NOx and other pollutants. 

4 - The Irish government needs to hurry up and let the country/industry know what it plans to do, for this uncertainty is killing the market full-stop, not just diesel power.

With all the above in mind, we will continue to help buyers choose a car based on their individual circumstances and for many that will still mean a diesel. For now.

I welcome thoughts and comments on this below. Would be great to get some feedback on what people think and whether they are holding off buying a car because of the uncertainty.

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Hi William,

Not quite. Actually VRT is calculated on the OMSP, or Open Market Selling Price, which is that which the Revenue Commissioners calculate the car would be worth if it were an original Irish registered model. So, yes, age and mileage do come into it, but it’s not quite as simple as that.

As for the UK residency thing, again it’s not quite that simple — yes, you can avoid VRT if you bring a car into the country that you can show has been taxed and insured for at least six months, by you, at an address in the UK, BUT you will be asked to provide proof that you’re moving from the UK to Ireland, and proof that you were living and working in the UK for at least 185 days prior to the transfer of residence. 

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Hi Sean,

I agree to a certain extent with this, but not completely. Rear-wheel-drive cars with their engines up front (as with your Mercedes) really struggle with traction in icy conditions, but front-wheel-drive cars are no better when it comes to braking and turning in the same conditions so if such a law was to be brought it, it really should apply to all cars, as winter tyres provide much more grip whether you're accelerating, braking or turning.

However, despite the crazy week we've had here in Ireland with snow and ice, long term weather stats clearly show that we don't get enough cold weather in most parts of Ireland (i.e. the temperature below seven degrees C) to warrant forcing everyone to change to winter tyres. Above seven degrees C, winter tyres are not as good as all-weather/summer tyres and they wear much quicker.

The Irish motorist already feels hard done by in terms of taxation and running costs so I don't think any government would bring this in here, but to be honest, I don't think they should, either. It really should be up to the individual. And that's coming from someone that has expereinced how brilliant winter tyres can be. Other opinions area available...

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Hi Dave,

A tricky one to value, mostly because the Irish market tends not to like the big engine option, even in something like an E-Class Coupe. I think you’re looking at a value of around €10,000, but it could be challenging to find a buyer.

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Hi Martin,

Camping vehicles, no — you can drive them as much as you like (depending on any mileage agreed with your insurer of course). Classic vehicles, usually yes — again, each policy is different and you can always negotiate, but Irish insurers tend to view classic and ‘vintage’ cars as very much show ponies, and you’re usually stuck both with a 5,000km annual limit and the need to show proof of having a ‘normal’ car insured and taxed for day-to-day use. 

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Hi Eamon,

Well, according to Mazda Ireland, very little. "From an Irish perspective at least, there won’t be any difference at that grade level. In late 2017, we did introduce the GT Lux edition, but this has yet to be launched across the full range in Ireland. So if comparing a 161 and 171 or 172, there’s no change,” was the official response.

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Hi Michael,

The price gap, new, in the UK market is around £4,200, but it will depend on whether Revenue treats the extra equipment as a separate model, or extras added to an existing car, in which case the gap would probably be higher still. I think, and this is a pure finger-in-the-air calculation, that if you add about €6,500 to the OMSP of the Model 2, then you’ll be in the right ballpark, but sadly this is yet another example of the inequity of a system that charges you based on what they think you should have paid, versus what you actually paid.

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Hi Michael,

I would expect to see little to no change in the hybrid subvention in the coming budget. Although there will be some pressure to incentivise low-emissions cars that aren’t diesel, the focus will probably be more on higher incentives for battery-electric cars, and possible plugin hybrids, and some changes to the reclaiming of VAT on petrol for company users. The Department of Finance will be well aware that there is a huge number of new hybrid cars due for launch, and they won’t want to risk a fall-off in revenue by increasing the subvention, so I think, at this point, it’s unlikely to change very much.