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HELP!! on taxation and VRT

  • 06-04-2010 12:07pm
    #1
    Closed Accounts Posts: 18


    Hi All!

    new to boards.ie. I'll keep it short -

    my fiance moved over from UK to Dublin end-January. We took 6 months lease on rented flat as don't know how he'll find it here etc. He drove his UK reg car over, fully insured and taxed in UK. It hasn't been driven since being here as I've left it up to him to find out what he needs to do to be able to drive it over here (he can temporarily, but doens't want to in case)... he hasn't, so I've done some digging and see it has to be registered with Revenue for possible VRT (he's had it over 3 years), then he can get tax and insurance.

    The thing is, I'm learning how to drive so we wanted to sell it and buy a hatchback. Will he be able to drive it over the border and sell it easily enough? I know that it doesn't have to be registered with revenue for short-term stays (less then 12 months) - he's temping here so nothing to suggest he will be staying for longer.

    If anyone can enlighten us - am pretty confused and the revenue I know don't like to make it easy, so am frustrated by it all at this stage. :confused:

    Thanks!


Comments

  • Closed Accounts Posts: 810 ✭✭✭ha-ya-said-what


    Reliefs and Exemptions

    There are various reliefs and exemptions from VRT. These are described in individual public notices which are available from any VRO. They include exemption which may apply in the case of:
    • transfer of residence
    • transfer of business activity
    • inheritance.
    Did you notice that bit??


    All the info you should need is here:

    http://www.revenue.ie/en/tax/vrt/leaflets/vrt1.html


  • Closed Accounts Posts: 18 FR


    Thanks for your reply.

    Have already gone through that link previously, thanks, but as I said, he's here temporarily initially and therefore hasn't transferred residency, and actually wants to sell the car w/o having to drive back to UK. Can he easily sell it over the border or will there be implications?

    Cheers


  • Registered Users, Registered Users 2 Posts: 6,352 ✭✭✭alias no.9


    Reliefs and Exemptions

    There are various reliefs and exemptions from VRT. These are described in individual public notices which are available from any VRO. They include exemption which may apply in the case of:
    • transfer of residence
    • transfer of business activity
    • inheritance.
    Did you notice that bit??


    All the info you should need is here:

    http://www.revenue.ie/en/tax/vrt/leaflets/vrt1.html

    Did you notice this?
    FR wrote: »
    The thing is, I'm learning how to drive so we wanted to sell it and buy a hatchback.

    They wouldn't be able to sell it without a clawback of the VRT exemption.


  • Closed Accounts Posts: 810 ✭✭✭ha-ya-said-what


    Once the car is his then from what I'm aware he should be able to sell it where he likes once he has all his paper work confirming it is his.


  • Closed Accounts Posts: 18 FR


    thanks for your reply. I had thought that the clawback of VRt would be just in republic, which is why I have suggested selling it over the border... thing is, it's not really worth that much, that's not the worry, the worry is not registering it in time if he decided to stay long term adn keep it. The previous poster 'ha-ya-said-what' gave the transfer of residence exemption, but in terms of UK to Ireland what would be the criteria of transferring residence and with whom... the more I look into it, the more answers I need.

    don't know enough about the legalities of car taxation :(


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  • Registered Users, Registered Users 2 Posts: 12,712 ✭✭✭✭R.O.R


    Once the car is his then from what I'm aware he should be able to sell it where he likes once he has all his paper work confirming it is his.

    You obviously haven't read all the info then have you? If it's re-registered ROI for free because of an exemption, you can't sell it for 12 months otherwise you'll become liable for VRT.

    That's all redundant though, as they want to go to NI to sell.

    OP - no problem to sell it across the border, but I doubt anyone is going to drive down south to view the car. Might be worth sticking an ad up on autotrader NI, but if they see a Republic phone number there won't be many calling.

    Best thing to do would be to take advantage of the exemption and re-register it here. If you don't stay, you can transfer it back to the UK.


  • Closed Accounts Posts: 810 ✭✭✭ha-ya-said-what


    Wasn't referring to selling it after getting VRT on the transfer of residence, once he has his paper work confirming the car is his, he can sell it north or south on UK plates, VRT responsibilty is therefore on the buyer


  • Closed Accounts Posts: 18 FR


    Thanks R.O.R,

    am just worried that if he registers it now having been here for a few months that he will get into some difficulties. He has come over to see how he finds it, but having read through I see they want proof of when he came over which is approx. 2 months ago.

    Argh, and then if he registers as ROI and then decided to sell he will have to pay (25%? of sale amount) VRT.

    I guess I'm looking for the easiest option - does he not register, and flog in UK/ NI? Does he register and keep for a year/pay VRT on % of sale?

    Confused.com

    Thank you all for your very quick replies though!


  • Registered Users, Registered Users 2 Posts: 12,712 ✭✭✭✭R.O.R


    FR wrote: »
    Thanks R.O.R,

    am just worried that if he registers it now having been here for a few months that he will get into some difficulties. He has come over to see how he finds it, but having read through I see they want proof of when he came over which is approx. 2 months ago.

    Argh, and then if he registers as ROI and then decided to sell he will have to pay (25%? of sale amount) VRT.

    I guess I'm looking for the easiest option - does he not register, and flog in UK/ NI? Does he register and keep for a year/pay VRT on % of sale?

    Confused.com

    Thank you all for your very quick replies though!

    I'd head in to your local VRO office (Tallaght & Santry in Dublin) and talk to someone in there. Explain you are here temporary, but may become permanent, and see what they say. If explained to them I wouldn't think they'd have any problems changing the registration over from UK to Ireland (as long as all paperwork etc. is in order) if the car has been here 2 months.

    If he does that though, I wouldn't even consider selling it. If he's not sure whether he wants a car here or not at all, then drive it back and leave it on the folks drive until such a time he's sure which way he's going.

    If I had this advice 13 years ago, I wouldn't have had a car rotting on my drive for 18 months. I wasn't sure whether I was staying permanent or temporary so did nothing with the car, then it was too late and I ended up buying an Irish car and leaving the UK one sit for ages. Eventually sold it for £400 (punts) to someone who drove it back to the UK.


  • Closed Accounts Posts: 18 FR


    thanks again R.O.R,

    on the phone (on hold) to reg offices as we speak/type. I shall keep u posted!


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  • Closed Accounts Posts: 18 FR


    Update:

    Waited forever, but finally got through to someone in Vehicle Reg Dublin office. Hadn't a clue.. kept sending me to website. Asked him exactly what we needed to register as ROI... "just logbook"... asked whether needed insurance details etc... "oh yeah". Asked whether we'd have to pay as car owned by fiance for over 3 years... "it depends". Asked what it depended on... "just go to website"....

    So, back to square one really. I think I'll pass it over to the better half (althoug, R.O.R, seems like re-reg seems the best bet). At my ripe old 31 years, my brain cells can't deal with any more confusion.

    Thanks all for your help/ remarks!


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