BIK on EVs.

beanian · 10-10-2023 1:47pm

The temporary universal relief of €10,000 to the Original Market Value in relation to the Benefit in Kind regime for company cars is being extended for another year.

Minister McGrath said that "in order to encourage the use of electric vehicles for company car purposes, I am temporarily suspending the tapering of the preferential BIK relief. I am therefore maintaining the existing €35,000 Original Market Value".

So if I read that correctly the existing BIK relief of €35,000 will remain and in addition the additional €10,000 relief also applies resulting in an effective €45,000 relief. So no additional BIK for 2024.

innrain · 10-10-2023 1:54pm

https://www.boards.ie/discussion/comment/121218320#Comment_121218320

I read the same. BIK zero for under 45k OMV.

Buzwaldo · 10-10-2023 8:06pm

Does the accelerated capital allowance still apply?

rocketspocket · 10-10-2023 9:23pm

https://www.boards.ie/discussion/comment/121220287#Comment_121220287

it does but can't see any point of this if you're keeping the car for less than 8 years as you have to play claw-back if you sell before then

hold my beer · 10-10-2023 9:28pm

It's only clawed back if sold at a profit i.e. more than the TWDV. The car restricted value of 24k still a pain in the nuts

wassie · 10-10-2023 10:35pm

Can you not just sell it to yourself at 24K, then onsell it for a higher amount as a work around, or have Revenue got that covered?

hold my beer · 10-10-2023 10:38pm

That's tax evasion so yes they do.

wassie · 10-10-2023 10:40pm

Fair point and I'm not advocating for such. But equally, its not evasion if you sold it to yourself with the intention to keep it, only to have a change in circumstances that warrants selling the car.

hold my beer · 10-10-2023 10:42pm

It has to be sold at market value.

wassie · 10-10-2023 10:44pm

Then that really is a 'pain in the nuts'....

rocketspocket · 11-10-2023 6:38am

https://www.boards.ie/discussion/comment/121220792#Comment_121220792

which is what happened to me as sold the car within 3 years so the allowance i got up front exceeded what i traded the car in at.. I don't fully understand it but my accountant said that if i plan to trade it in within 3-4 years then don't take the accelerated depreciation.

BIK on EVs.

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