Living in UK for 9months - can you bring a car back VRT-free?

commited

Hey guys,

My sister is going to work in the UK for 9 months as part of her college course. She will be in a paid working position, not studying.

We were discussing the option of buying my fathers replacement vehicle, such as a 6month old BMW F10 525d SE, in her name and her using it until she comes back in the summer. She would retain it in her name for a year afterwards until she "sells" it to my father.

Is this a possibilty?

I know people might feel that this is trying to "screw" the system etc, but my father has paid a fortune in VRT & motor tax over the years. This won't be done for profit, just so that my dad doesn't lose such a catastrophic amount in depreciation when he swaps in 3 years.

Thanks
Mark

commited

Whoops this should have gone into Motors, sorry.

kasper

i think it might get a better response in the motors section ,i would be worried how would your father be able to insure a car that is not in his name if anything happened the insurance would walk away from it and leave your fatherwith a huge loss ,nothing wrong with beating the system

bmstuff

This scenario is screwing the system.

If she stays more than 6 months abroad and come back with a car, she is entiltled to do so and not have to pay the VRT.
Selling it after a year is also legal.

I see no problem here. Make sure she gathers as much as paper work as possible. Insurance disk, employer cert, utility bills etc.

commited

Kasper,

Thanks for your reply. Re insurance - I believe you can insure cars that aren't registered to yourself. Only some companies have a problem with this.

BMstuff,
Thanks for the reply. I just want to make sure that there are no problems that we may encounter.

A reasonably specced up 530d SE is about £42k new in the UK, but €67k here. I'm thinking that a 6-9month old one should be about €40k to purchase in the UK, which should offer an excellent saving. I would expect it to be worth €35k after 3 years (considering that 4 year old 03-04 E60 530d's were going for about €35-40k when times were good).

You should be ok if she has owned it for more than 6months and has proof of use in the uk and of course proof living/working there. Technically you have to live abroad for a year but when I availed of the VRT exemption there main concern was owning the car abroad for more than 6months. I did live abroad for more than a year but as I was not working for the first while so couldnt really prove the first few months and they didnt really question it.

In my opinion just say she lived there for the year and have all the proof for the time she is there and ye should be fine.

Also you are not screwing the system you will be legally availing of an exemption for people who live abroad for a certain amount of time.

commited

Cheers Nox. If she needs to live/work there for a year, it shouldn't be a problem to extend it by 3months!

Hogzy

As far as i know if you are going abroad as a student for educational reasons you are NOT entitled to a VRT exemption. You must go as a worker or a self employed person in order to be able to avail of the exemption. I could be wrong though. Just checked citizens info there and it doesnt say it but im almost positive iv read it somewhere on revenue.ie or citizens information.

EDIT found it,

http://www.revenue.ie/en/about/foi/s16/vehicle-registration-tax/vrt-manual-section-2.pdf

Its on Page 6

MagicSean

If your sister isnt staying in UK I dont think that'll work. Are you planning on registering it in Ireland or driving it on the English reg?

EPM

Sorry to hijack OP...but what if you are working in the UK for your Irish employer in a UK office under your Irish T&C's?

If you had bank account/utility bills etc are you safe enough?

Hogzy

EPM wrote: »

Sorry to hijack OP...but what if you are working in the UK for your Irish employer in a UK office under your Irish T&C's?

If you had bank account/utility bills etc are you safe enough?

Doesnt matter about your conditions for work. If YOU as a person are living abroad then you will satisfy it. Lads id really recommend reading the document i posted above. Its plain and simple to read, no legal mumbo jumbo!

EPM

Hogzy wrote: »

Doesnt matter about your conditions for work. If YOU as a person are living abroad then you will satisfy it. Lads id really recommend reading the document i posted above. Its plain and simple to read, no legal mumbo jumbo!

You sir, have just opened up a world of drool worthy motors to me.

So if someone wants to buy mine not I'm sorted:D

Lex Luthor

by the look of that document, 9 months is not enough to qualify...must be 12 months at least.

corktina

i thought it was 12 months too

bmstuff

Can't make it clearer...

2.1.1.2 Eligibility Criteria
To qualify for relief the applicant must:
􀂈
in the case of relief from the payment of VRT have had his/her normal residence outside the State for a period greater than 6 months or, in the case of relief from the payment of CCT duty and VAT, outside the EU for a continuous period of twelve months;
􀂈
have transferred his/her residence permanently to the State;
5
Vehicle Registration Tax
[SECTION 2]
􀂈
be the owner of the vehicle/s at the time of transfer;
􀂈
have had possession and actual use of the vehicle/s:
•
outside the State for 6 months prior to transfer in the case of relief from the payment of VRT, or
•
at the former normal place of residence outside the State for 6 months prior to transfer in the case of relief from the payment of CCT duty and VAT;
􀂈
not be a student returning to the State having attended a school, university or other educational or vocational establishment abroad;
􀂈
not be a person who was living abroad in order to carry out a task of definite duration of less than one year and whose personal ties4 remained in the State during that time;
􀂈
in the case of VRT relief, not have availed of the relief within five years of the granting of such relief where the applicant went abroad for the purpose of carrying out a task of a duration of one year or more and whose personal ties remained in the State during that time.