Expert answer

Hi Alexander,

We've looked those cars up. Both are BMW M140i with slightly different specification, but both powered by the same 3.0-litre petrol engine. 

Using Revenue's website to check the tax rates by reg does indeed show the discrepancy you've found and it suggests that the 171 car's emissions are in the 101-110g/km range, which is just impossible with that engine. We're not sure how that could have happened.

Someone somewhere put the wrong details in the system for that car. 

Expert answer

Hi Neil,

For cars, the motor tax band is determined by the CO₂, as you said, but for vans it works differently. When a van is used purely for commercial reasons it's a flat rate of €333, but if the van is actually to be used for any private reasons, it has to be taxed as a private vehicle.

And for some bizarre reason, the rate it is then taxed at is determined not by its CO₂ rating, but by its engine size. Hence the weird situation you've described above where the Peugeot van's engine (1,501-1,600cc in size) means it costs €514 a year to tax for private use, while the CO₂ emissions of the Rifter (141-150g/km) mean it only costs €270 a year. 

Hopefully that explains what's happening anyway, weird as it seems. 

Expert answer

Hi Paul,

As a passenger vehicle, the VRT cost will depend on the Open Market Selling Price (OMSP) and the VRT band. The latter is determined by the CO₂ rating, which for that model means the highest with emissions of well over 191g/km. VRT is therefore 41 per cent of the OMSP.

Unfortunately, the OMSP is nothing to do with the price you pay for the car. It's the figure Revenue believes the car to be worth in Ireland. That's not very easy to guess at for a rare model such as the Defender. For the purposes of our calculations let's assume it's €40,000, but you may know Irish values of these cars better so adjust the figures accordingly.

At an OMSP of €40,000, the VRT alone would be €16,400.

You will also have to pay the NOx levy on top of that. This can be up to €4,850 for diesel models and unfortunately the Defender is likely to attract the top value.

Assuming the Defender was imported into Northern Ireland and used there by someone (i.e. not just a car dealer), then you should not be liable for VAT or customs duty, but you will need to be able to prove its status to Revenue when importing it.

Motor tax in Ireland will be at the top rate of €2,400 per year.

A few useful guides for you:

Motor Road Tax Prices in Ireland Explained
Guide to Importing a Car from Northern Ireland
How Much VRT is Paid in Ireland?

Expert answer

Hi Dan,

Looks like you’re on the right track, yes. The change of ownership may be possible online if the van has the newer digital VRC (vehicle registration certificate - i.e. the logbook) and needs to be done by the company.

If you plan on using the van for any private use whatsoever then yes, you will need to change the motor tax, which is done at your local motor tax office. Note that the rate depends on the engine size of the van and that you’ll need insurance before you can do that.

I’d suggest looking into the insurance before you do anything else, as it can sometimes be tricky finding private insurance on a commercial vehicle.

Expert answer

Hi Dave,

I’m not sure if would class as fraud as such, as nobody except you knows that you don’t intend to trade (though I’d advise you get actual legal advice on that, as that’s not our remit). However, a vehicle registered for commercial use cannot be used for any personal reasons and if you’re stopped, for example, bringing the kids to school in the SUV, then you are liable to a fine.

Aside from all that, you’ll be required to submit VAT returns and other accounting paperwork for the dormant business that will cost you at least some time, most likely some money, so you need to do the sums on that and calculate whether it’s worth the hassle.

Sounds like an awful lot of trouble to go to just to reduce your annual motor tax.

Expert answer

Hi Louise,

It would be €710 a year. See our Motor Road Tax Prices in Ireland Explained guide for more information.

Expert answer

Hi Shane,

When you're taxing a commercial vehicle for private use then the rate goes by the engine size. 

The Wildtrak can be had with 2.0 or 3.0-litre diesel engines, while the Ranger can be had with a 2.0-litre diesel or 3.0-litre petrol option. The 2.0-litre engines cost €710 a year to tax and the 3.0-litre units (doesn't matter what fuels them) are €1,494 per annum.

Read our Motor Road Tax Prices in Ireland Explained feature for full details.

Expert answer

Hi Aileen,

Motor tax for cars only goes by the engine size if it was registered before 2008. If the 1.6 you’re talking about is older than that then the annual motor tax should be €514 (assuming the engine size is 1,501-1,600cc).

If the car is newer, then its tax goes by its CO₂ emissions. We’d need to know full details of the car before we could look that up for you, as the engine size and type alone aren’t sufficient.

Read our Motor Tax Prices in Ireland Explained page for more information.

Expert answer

Hi Jake,

You can easily notify your local motor tax office that you will be using a pickup like the Amarok for private use, and then pay the required motor tax. Unfortunately, that may not satisfy the insurers. Best to ask them before you buy the vehicle if this will be sufficient, and also make sure you get a quote. 

If you have no joy, consider employing the services of an independent insurance broker to do the legwork for you.

Best of luck

Expert answer

Hi Ed,

The only diesel engine offered in the 2009 XC70 was the old five-cylinder 2.4-litre unit. It was available in many states of tune though, so that will affect the CO₂ rating, which is how the tax is determined. 

It would appear that most will fall into Band F, with emissions of 191-225g/km. That currently means annual motor tax of €1,200.