Disabled VRT qualified person passes away

gorrrr72

My friend's father passed away recently, he was a disabled driver and his car is a year old.
The VLC says that the vehicle can't be sold for 2 years from when first registered (about a year from now), will there be a VRT/VAT refund liability owed now if they change ownership or sell the vehicle?

Is it best to hang onto the vehicle until the year is up or should the death be reported to the disability scheme?

mickdw

gorrrr72 wrote: »

My friend's father passed away recently, he was a disabled driver and his car is a year old.
The VLC says that the vehicle can't be sold for 2 years from when first registered (about a year from now), will there be a VRT/VAT refund liability owed now if they change ownership or sell the vehicle?

Is it best to hang onto the vehicle until the year is up or should the death be reported to the disability scheme?

If it was to be sold now, 50% of the savings made would have to be repaid I would think.
There may be a relaxation of this though in the case of death. A call to revenue would clear it up.

gorrrr72

mickdw wrote: »

If it was to be sold now, 50% of the savings made would have to be repaid I would think.
There may be a relaxation of this though in the case of death. A call to revenue would clear it up.

Yeah, that's what he was afraid of. He was hoping to keep it but it was a 30k car so I reckon the VAT/VRT was probably 6-8k and he doesn't have 3 or 4k to fork out.

L-M

gorrrr72 wrote: »

Yeah, that's what he was afraid of. He was hoping to keep it but it was a 30k car so I reckon the VAT/VRT was probably 6-8k and he doesn't have 3 or 4k to fork out.

"You are required to keep the vehicle in your possession for at least two years from the date of purchase or from the date of making the valid claim, whichever is the later. The Vehicle Registration Certificate will be endorsed to this effect.

Disposal of the vehicle during this period will only be allowed on the basis that you make a refund to Revenue of all or a portion of the tax relief given, including the VRT remitted, if applicable.

In this context, disposal includes the sale of the vehicle, the gift of the vehicle to another person and the hiring or renting of the vehicle, exporting the vehicle, emigration of the person with a disability, scrapping the vehicle or the death of the person with a disability."

http://www.revenue.ie/en/tax/vrt/leaflets/drivers-passengers-with-disabilities-tax-relief-scheme.html#section8

gorrrr72

Limerick man wrote: »

"You are required to keep the vehicle in your possession for at least two years from the date of purchase or from the date of making the valid claim, whichever is the later. The Vehicle Registration Certificate will be endorsed to this effect.

Disposal of the vehicle during this period will only be allowed on the basis that you make a refund to Revenue of all or a portion of the tax relief given, including the VRT remitted, if applicable.

In this context, disposal includes the sale of the vehicle, the gift of the vehicle to another person and the hiring or renting of the vehicle, exporting the vehicle, emigration of the person with a disability, scrapping the vehicle or the death of the person with a disability."

http://www.revenue.ie/en/tax/vrt/leaflets/drivers-passengers-with-disabilities-tax-relief-scheme.html#section8

So what you are saying is, say nothing and keep driving it , just kidding, thanks for the info. I'll let him know and let him decide if it's worth keeping and paying tax.

L-M

gorrrr72 wrote: »

So what you are saying is, say nothing and keep driving it , just kidding, thanks for the info. I'll let him know and let him decide if it's worth keeping and paying tax.

i know you're only joking and i haven't personally experienced the above, but i would assume for the car to be driven on the road it would have to be transferred into a new owners name as per the will etc, so it will have to be paid for either way before it's sold/transferred or "disposed of" as per Revenue.

corktina

The VRT will be a liability of the deceased estate, like outstanding Income Tax would be and should be paid, along with funeral expenses etc before the estate is divded according to his will.It's his Executors responsibilty to make sure this is done