Buying a car in the UK (VRT Exemption)

losetheforce

Hi

I am currently living in the UK. I intend to move back in the next year and am planning on bring back 2 cars, one for me and one for the wife, I understand all the T&Cs regarding time limits for purchasing & selling etc...

Basically I am looking for cars that would be easy to sell in Ireland at a later stage, something I could buy in the UK and maybe sell in 3 years time that would not end up costing me very much.

Eg : could I buy a 2007 Audi A4 for £12000 and sell it in 3 years time for €12,000?

Any tips on a car that would be good to bring back?

cheers

losetheforce

bazz26

losetheforce wrote: »

Hi

I am currently living in the UK. I intend to move back in the next year and am planning on bring back 2 cars, one for me and one for the wife, I understand all the T&Cs regarding time limits for purchasing & selling etc...

Basically I am looking for cars that would be easy to sell in Ireland at a later stage, something I could buy in the UK and maybe sell in 3 years time that would not end up costing me very much.

Eg : could I buy a 2007 Audi A4 for £12000 and sell it in 3 years time for €12,000?

Any tips on a car that would be good to bring back?

cheers

losetheforce

Diesels are all the fashion here especially 08 or newer as they qualify for low motor tax. Anything older than 08 is taxed on the engine size so the best sellers of 07 or older would be a small capacity diesel like a 1.4 Corolla or 1.6 Focus. Anything petrol would be a no no as it will be difficult to shift imo.

losetheforce

Hi bazz26 and thanks for your reply,

ok, actually I am a little confused, I though all cars imported after 2008 would be on the new emissions based motor tax system? Obviously this is not the case, I tried reading citizensinformation and the motor tax website to no avail. I also rang the motor tax office and they didn't know, they told me to ring the Policy Unit in Dublin.

My question is, if I import a car does the date of the car's original registration matter for calculating Motor Tax, if so, what is the key date? 1 Jan 2008 or 1 July 2008?

Also regarding the emission, is thie the factory standard emissions or is it actually measured by ther NCTS?

cheers

lose

Eoin

Isn't it that the VRT is calculated (mostly) on emissions, but the motor tax is CC based if it's older than 2008?

mickdw

VRT is emissions based regardless of year. Tax is emissions based from 08 on. Petrols are also on the emissions systems for motor tax and its not quite correct to say that they are a no no. Many petrol car tax rates also reduced in 08 and after although diesels did benefit more without a doubt.
If you bought a 08 Audi A4 diesel, its irish price would likely devalue by over 3k euro per year.
An 08 new model A4 appears to cost around 9.5k sterling currently in uk & might be €16.5k here. So bring one in now will still cost you if keeping it 3 years however you would certainly get 1 to 1.5 years depreciation free I would think.
How long do you have to have the car each end though to avail of the exemption?

mullingar

Since 2008, VRT is always calculated based on CO2 for all year cars

CO2 motor tax 08+
cc motor tax <07.

losetheforce

Thanks for the responses guys, it is hard to get reliable info.

I won't be paying VRT (transfer of residence) so that's not an issue.

I got the following response from someone in a Co. Co. Motor Tax office :

A private car first registered abroad between 1 January 2008 and 30 June 2008 inclusive and subsequently registered in Ireland will be taxed on whichever is the lesser of the motor tax rates based on engine size (c.c.) or CO2 emissions.
A private car first registered abroad after 1 July 2008 and subsequently registered in Ireland will be taxed on CO2 emissions.

this seems to be straight off http://www.cavancoco.ie/cavanweb/publish/domain/cavancoco/Default.aspx?StructureID_str=218&category=Motor%20tax

I know the car has to be brought to the NCTS guys, I wonder do they check the emissions or are the emissions from the certificate of conformity used?

Any other suggestions? I was thinking 2008 Audi A4 TDi as its low tax and a desirable car. Would there be any point in buying Peugeot 406, Renault Laguna, VW Passat, Toyota Avensis

You have to own the car for 6 months before moving and has to keep it 1 year after moving.

R.O.R

losetheforce wrote: »

I know the car has to be brought to the NCTS guys, I wonder do they check the emissions or are the emissions from the certificate of conformity used?

Any other suggestions? I was thinking 2008 Audi A4 TDi as its low tax and a desirable car. Would there be any point in buying Peugeot 406, Renault Laguna, VW Passat, Toyota Avensis

You have to own the car for 6 months before moving and has to keep it 1 year after moving.

Emissions from the V5C or Certificate of Conformity are used for VRT & Tax.

New model A4's are selling very well at the moment, but be careful as there are a few different emissions on the 08 cars as there were engine upgrades throughout the year.

Only other one I'd consider is the Passat, but UK spec's are different to Irish and the leather on the 2008 UK Highline is a rather saggy looking affair on Comfortline seats (were the sport seats here).

Stick with the A4 and you should be OK.

heate

Given that vrt is now based on emissions - I guess you don't have to go 2008 onward as your not paying this.
However if you think you'll make a profit selling the car on after 12 months - depreciation will take all that 'profit' away, the vrt is 3-3.5k on an 08 A4.

Glenbhoy

Just to clarify what the guys are saying by way of an example:

In 2008, I brought in a 2004 Volkswagen Bora 1.9TDi. Whilst the VRT was based on the emissions which were only 138, the annual motor tax was based on the engine size as the car was first registered prior to Jan 1, 2008 (the key date is when the car was first registered, not when it was first registered in Ireland).
This meant that my annual motor tax was €600 p.a as opposed to €156 p.a if it had been a 2008 car with similar emissions. As you can see that adds up significantly over a few years and will impact on the vehicle resale price.

http://www.vrt.ie/

The site above gives a link to prospective road tax too.

Eoin

losetheforce wrote: »

I got the following response from someone in a Co. Co. Motor Tax office :

A private car first registered abroad between 1 January 2008 and 30 June 2008 inclusive and subsequently registered in Ireland will be taxed on whichever is the lesser of the motor tax rates based on engine size (c.c.) or CO2 emissions.

this seems to be straight off http://www.cavancoco.ie/cavanweb/publish/domain/cavancoco/Default.aspx?StructureID_str=218&category=Motor%20tax

Wow, so not only will someone with an "Irish" car older than 2008 potentially pay more tax than the same one that's post 2008, but they'll pay more tax than an imported one from the same year?

losetheforce

I'm not really looking to make a "profit", I'm more looking to buy a car which will give me a few years motoring and I'll be able to dispose of after a few years without too much difficulty and won't have depreciated massively.

Glenbhoy

Eoin wrote: »

Wow, so not only will someone with an "Irish" car older than 2008 potentially pay more tax than the same one that's post 2008, but they'll pay more tax than an imported one from the same year?

No, the way motor tax is calculated is entirely dependent on the date the car is first registered, not when it is first registered in Ireland.
Cars of the same age therefore pay the same motor tax.

Eoin

Glenbhoy wrote: »

No, the way motor tax is calculated is entirely dependent on the date the car is first registered, not when it is first registered in Ireland.
Cars of the same age therefore pay the same motor tax.

Sorry - you're right - here's the relevant part of that page:

A private car first registered abroad prior to 1 January 2008 will be taxed on engine size (c.c.). The CO2 based motor tax system does not apply to second-hand imports that were registered abroad prior to 2008.

bazz26

mickdw wrote: »

VRT is emissions based regardless of year. Tax is emissions based from 08 on. Petrols are also on the emissions systems for motor tax and its not quite correct to say that they are a no no. Many petrol car tax rates also reduced in 08 and after although diesels did benefit more without a doubt.
If you bought a 08 Audi A4 diesel, its irish price would likely devalue by over 3k euro per year.
An 08 new model A4 appears to cost around 9.5k sterling currently in uk & might be €16.5k here. So bring one in now will still cost you if keeping it 3 years however you would certainly get 1 to 1.5 years depreciation free I would think.
How long do you have to have the car each end though to avail of the exemption?

My point is though, from a resale point of view even low motor tax petrol cars are still hard to sell on as the country has become obsessed with buying diesel cars, even people who only do 5k miles a year are not even considering a petrol car. For example a friend of my father has a mint 09 Toyota Auris 1.33 litre petrol with under 20k miles on the clock on sale for the last few months, its a high spec UK car, €156 to tax, immaculate condition and priced very well compared to others. Interest has very thin on the ground and the first question they ask is it the 1.4 D-4D model despite the add saying 1.33 petrol. As soon as they hear petrol the interest cools.

Going on current buying and selling trends the OP is better off bringing in a 08 or newer low emmissions diesel car.

arturcreo

hi guys, im just wondering if any one of you know : Do priests ( catholic church) are except
of paying VRT? In some EU country I know they are, so it may be worth to check how it works here in Ireland

mullingar

arturcreo wrote: »

hi guys, im just wondering if any one of you know : Do priests ( catholic church) are except
of paying VRT? In some EU country I know they are, so it may be worth to check how it works here in Ireland

Definetly not.

However, if you have lived in the UK for the last 6 months and had the same car taxed/insured in the UK for that period, you would be eligible for a VRT exemption only as a residence transfer. The main condition is you can't sell the car for 12 months after.

losetheforce

Ireland is the only country in Europe (if not the World) with VRT, so in every EU country priests (and everyone else) is exempt from paying VRT.

mullingar you are correct in what you say above, expcept that you must also have been outside the state for a minimum of 12 months and have been working, living abroad and have bills, lease, etc to prove it