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Hi Ken,

It depends on what exactly we’re talking about here. If it’s a two-seat Land Cruiser with a cargo bay in the back, then Revenue should treat it as a purely commercial vehicle for VRT purposes, even  if you later go on to tax it as a private vehicle. If, though, it’s a four-seat model that has been categorised as an N1 in the UK, Revenue won’t accept it as a van here anymore, and it’ll be charged at the full passenger car VRT rate. 

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Hi Richard,

The phrase ‘can of worms’ springs to mind. In general, a car can be registered to a company, and taxed and insured by the company, and still used by an individual for social, domestic and pleasure use. That’s how company cars work, obviously, but equally obviously there’s a Benefit-in-Kind tax liability to be paid. So it’s possible that your friend with the Land Cruiser is trying to avoid paying BIK.

In the case of the SUV, in theory a car that’s taxed as a commercial cannot be used for personal, social, domestic, or pleasure driving and there’s a fine to be paid if you’re caught displaying incorrect tax. Now, we should state at this point that we’re neither legal nor tax experts, and that the people you’re talking about could be operating entirely above board, and we’re not going to cast any aspersions on anyone.

Of course, this is Ireland and as we know, we don’t like sticking to the rules...

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Hi Hugh,

Sort of, yes. The thing is that there aren’t any five-seat commercial 4x4s anymore — the N1 certification loophole for that kind of car was closed off in 2018, so now five-seat SUVs pay a full rate of VRT. However, if you’re exempt from paying both VRT and VAT then one of those very cars (Toyota Land Cruiser, perhaps? Or maybe a VW Touareg?) would be an ideal car for you as you will be getting one at an effective 50 per cent discount compared to the rest of us. Well worth investigating.

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Hi Ger,

It’s a tough car to value, the Amazon, not only because they’re so thin on the ground in Ireland, but also because they really, really, hold onto their value. I’d take a wild guess at a VRT charge of around €9,000 (based on a rough calculation of a €25,000 valuation), but Revenue could well take a different view. By the way, if you’re going to import one, do it before Jan 1st. The NOx emissions for a 4.2 diesel Amazon are 570mg/km, which means an extra VRT charge of €4,850...

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Hi Gustavo,

Well, reliability and running costs are not necessarily the same thing. The ultimate in reliability is probably a Toyota Land Cruiser, but that’s hardly cheap to run or to tax… I think there’s a couple of good options here, though. Sticking with Toyota, the Auris is a solid bet, and even more so if you go for the Hybrid model, which will help keep your tax and fuel costs down. Get the Tourer estate model if you need maximum family space.

The Honda Civic is also a very good bet, and the 1.6 iDTEC diesel is probably the best model to go for to keep fuel and tax bills down. Again, if you want maximum space for the kids and their things, track down the (rather handsome) estate version.

Skoda’s Octavia is solidly reliable too (again, the Combi estate is the one to go for) and you can choose from 1.6 TDI diesel, or an excellent 1.2 TSI petrol turbo, both of which are frugal and tax-efficient. Just check its history to see if it’s been used as a taxi — many have been.

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Hi Elizabeth,

It will depend on the model and the spec, but you’re looking at VRT in the region of €25,000.

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Hi Al,

BMW, Audi and Mercedes don't do an in-house commercial option, but you can get an aftermarket conversion, of course.

One option worth looking at is the Jeep Grand Cherokee. A really nice car, good to drive and Agnelli Motors on the Naas Road in Dublin do a five-seat commercial conversion with prices starting around the €45k mark.

There's also the Toyota Land Cruiser 'Business' model, but it's a bit more expensive,  at €57k. Utterly indestructible though and hugely comfortable.

Just make sure you've properly taxed it if you're planning on using it for domestic or family motoring as the fines for using a commercially taxed vehicle for that are pretty stiff. 

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Hi Dave,

The Land Cruiser is indeed getting a new 2.8-litre diesel engine, which is claimed to be nine per cent more efficient than the old 3.0. It has CO₂ emissions of 194g/km, 177hp and 420Nm of torque. Shared with Fiat though? No - Fiat does have its own 2.8-litre diesel, but it's a commercial vehicle engine, usually used in the Ducato van. For its passenger cars (Jeep Grand Cherokee, Maserati Quattroporte, etc.) the Fiat group uses a VM Motori built 3.0 V6 diesel.

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Hi John,

The Q7 and BMW X5 would both be good choices, as would a Land Rover Discovery (although you'd definitely want to take out an aftermarket warranty on any of those three at that price level).

Better options are out there though. Volvo's XC90 is hugely spacious and built to last, but if you want something totally indestructible, track down a long wheelbase Toyota Land Cruiser.

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Hi Ed,

Land Rover's quality has been getting better and better and it seems as if the current Discovery model has shaken off a lot of its reputation for weak gearboxes and electrical maladies. I think it's probably worth the punt, but there are two other good options - both the Mitsubishi Pajero and Toyota Land Cruiser are also available in 'business versions' that mean you can buy them for the price of a commercial but you get the back seats and luxury touches. That said, you'll have to tax them as a private car if you're going to carry the kids around - it's a €4,000 fine if you're caught with the incorrect tax.