Bringing car from UK to Ireland, Irish resident

ucd6

Hi I am currently an architectural consultant in the UK and have worked here the past two years but still reside in Ireland due to tax purposes so I travel back every couple of weeks.

I was considering buying quite an expensive car as I can bring it back to ireland without the VRT if I own it for 6 months over in the UK. However, I have to own the car in Ireland for 12 after that before I can sell it. It this entirely correct??

Any input would be greatly appreciated

bkehoe

ucd6 wrote: »

Hi I am currently an architectural consultant in the UK and have worked here the past two years but still reside in Ireland due to tax purposes so I travel back every couple of weeks.

I was considering buying quite an expensive car as I can bring it back to ireland without the VRT if I own it for 6 months over in the UK. However, I have to own the car in Ireland for 12 after that before I can sell it. It this entirely correct??

Any input would be greatly appreciated

Haha, so you want to pick and choose which aspects of each countries tax systems that suit you best? HMRC/Revenue could have a field day with that.

You need to be 'non-resident' in Ireland for 6 months in another EU country to avail of the exemption and be able to provide proof you lived (mortgage/rent documentation, council tax, utility bills), worked (payslips, UK bank account statements, etc) and used the car abroad (fuel receipts, etc).

ucd6

BKEHOE... Yes I have all available documentation, rent receipts, pay slips etc. I'm not trying to 'scam' any system out of it but just wondering what my options are? Both systems seem to 'ride you' in most ways anyway so if there is scope to exploit a situation (legally) which I am in, then that would be great

kavanada

I think, ucd6, if you still have a PPS No., run a salary through it and pay Income Tax, USC and PRSI, Revenue will see you as resident in Ireland.

The fact you earn it outside Ireland won't be of interest to them. They look at things like do you have an Irish bank account, come to Ireland on your days off, have family ties in Ireland, a car, etc?

If you pay UK tax, you might be in a better position to argue that you're not resident in Ireland anymore.

ucd6

Kavanada I work in the UK and am hired out via a UK recruitment agency. I do not pay irish tax on any of my income, my tax is paid in the UK. I do visit Ireland every few weeks just to see my family etc.

CiniO

ucd6 wrote: »

Kavanada I work in the UK and am hired out via a UK recruitment agency. I do not pay irish tax on any of my income, my tax is paid in the UK. I do visit Ireland every few weeks just to see my family etc.

How does it line with that:

Hi I am currently an architectural consultant in the UK and have worked here the past two years but still reside in Ireland due to tax purposes so I travel back every couple of weeks.

kavanada

Ok, grand so. Your earlier post about being a consultant in the UK but still Irish Resident implied you were not paying tax in UK.

You can only be Resident in one country. It sounds like you are UK Resident for tax purposes and therefore able to buy your UK car and bring it back with you and have no VRT bill.

kavanada

Yes, Cinio, exactly.

ucd6

My apologises guys I probably wasnt entirely clear about my situation. I am a resident in the UK so if I own the car for 6 months here I can bring it back to Ireland without VRT. I do, however, have to keep it in my ownership for 1 year following that. Is there any way around that?? Because I might want to go travelling next year some time??

The_Chap

ucd6 wrote: »

My apologises guys I probably wasnt entirely clear about my situation. I am a resident in the UK so if I own the car for 6 months here I can bring it back to Ireland without VRT. I do, however, have to keep it in my ownership for 1 year following that. Is there any way around that?? Because I might want to go travelling next year some time??

There is no way around having to keep the car for 12 months, if you sell you are liable for vrt

sunnysoutheast

ucd6 wrote: »

My apologises guys I probably wasnt entirely clear about my situation. I am a resident in the UK so if I own the car for 6 months here I can bring it back to Ireland without VRT. I do, however, have to keep it in my ownership for 1 year following that. Is there any way around that?? Because I might want to go travelling next year some time??

The exemption is only for genuine transfer of residence. I suggest you download the relevant form from Revenue and have a look at the level and type of documentation they will require, including evidence of day-to-day living, disposal of property in UK, new job etc. in Ireland. Very exhaustive.

As a general rule, you will need to keep a vehicle brought in to Ireland under the exemption for 12 months before disposal/transfer can be carried out without the o/s VRT being paid. It is stated on the registration document. Revenue do waive under certain circumstances I believe but I don't think travelling will count as a valid reason.

sunnysoutheast

kavanada wrote: »

Ok, grand so. Your earlier post about being a consultant in the UK but still Irish Resident implied you were not paying tax in UK.

You can only be Resident in one country. It sounds like you are UK Resident for tax purposes and therefore able to buy your UK car and bring it back with you and have no VRT bill.

It's very common to be tax resident in more than one country!

You can only be domiciled in one country.

From my reading of it, the OP would be Irish-domiciled, ordinarily resident in Ireland and resident in the UK at present.

kavanada

Actually, yes. You can pay tax in each of the countries you earn money in and then get a credit for that amount back in your domiciled country but we're starting to get into the realms of multi-millionaires.

The above also only applies if the home country and working country have a Double Taxation Treaty Agreement with each other, otherwise you'll be taxed twice.

I think there's a bit of thread drift creeping in! ucd6, the way it stands with you, you can bring your UK car into Ireland VRT-free but the Irish Revenue's Commisioners opening stance will be, 'you owe us VRT. Prove to us you don't.'

Your case is pretty good unless you sell it within 12 months of returning.

sunnysoutheast

kavanada wrote: »

....ucd6, the way it stands with you, you can bring your UK car into Ireland VRT-free but the Irish Revenue's Commisioners opening stance will be, 'you owe us VRT. Prove to us you don't.'

Your case is pretty good unless you sell it within 12 months of returning.

I'd say it's likely that they will be OK but the OP will still have to prove they are actually transferring their residence to Ireland to avail of the exemption. Having current tax residency in the UK won't necessarily be enough.

OP - do you intend to take up work/study in Ireland? If not how do you intend to prove that you will remain resident? I'd double check you can provide the information the Revenue ask for on the form before making any decisions.

I brought my car in under the exemption last year and had to provide very detailed UK information as I was moving to a property in Ireland I already owned so that must have rang alarm bells.

I am tax resident in both Ireland and the UK but sadly I am not a multi-millionaire

CiniO

sunnysoutheast wrote: »

It's very common to be tax resident in more than one country!

.

Within the EU?
How?
For tax purposes, you are resident only in one country at the time.
You might pay taxes in more than one country, but you can be tax resident only in one at the time.

sunnysoutheast

CiniO wrote: »

...but you can be tax resident only in one at the time.

Unfortunately not.

You can be resident in both Ireland and the UK (as an example) in the same year under the 280 day/2 tax years rule.

In the case of Ireland, you will also be ordinarily resident (and subject to Irish tax on certain income) for three tax years after the year you left.

As I said, a person only has one domicile, which determines the tax treatment of their worldwide income.

All of this is taking the thread miles off course, which is ironic since I actually started it in November 2013. The car in question is still in our garage

Gumbo

ucd6 wrote: »

I do, however, have to keep it in my ownership for 1 year following that. Is there any way around that?? Because I might want to go travelling next year some time??

Not only that, but the log book will be stamped stating that it is a VRT exempted car and a transfer of ownership cannot be processed within the 12 months.

biko

Moved out from old thread