VRT on gifted car?

Balls2dWall

I live in the UK, I buy a new car every 6/7 years, this current car is a year or so from being replaced. I have checked the VRT websites and the costs to do VRT seems more than the value of the car here in the UK, I paid 17k for it new in 16, list price was 25 ( I got a good deal) , I want to drive it home and gift it to my bother next year 2022. I would Value it in 2022 as 1500 euro, but it would be given to him for free . Does he have to pay VRT?

All information greatly received.

biko

VRT is based on what the Irish government assumes the car's value is, not what someone paid for it.
He cannot drive it at all until the plates are changed.

bazz26

Yes he does.

Isambard

Balls2dWall wrote: »

I live in the UK, I buy a new car every 6/7 years, this current car is a year or so from being replaced. I have checked the VRT websites and the costs to do VRT seems more than the value of the car here in the UK, I paid 17k for it new in 16, list price was 25 ( I got a good deal) , I want to drive it home and gift it to my bother next year 2022. I would Value it in 2022 as 1500 euro, but it would be given to him for free . Does he have to pay VRT?

All information greatly received.

your figures don't make sense. 6/7 years old in 2022 would be around 2015, if it were , say , a Focus, the value would be 9 or 10 thousand euro. VRT would be based on the OMSP that Revenue determine. Not only that but other taxes now apply mainly thanks to Brexit . I doubt they'd let you get away your valuation for this either.

Buffman

Balls2dWall wrote: »

All information greatly received.

As said, VRT is based on Open Market Selling Price, which Revenue make up themselves, so the actual price paid doesn't come into it.


Also, as you're living in the UK you may not have heard about how Brexit has added VAT and Duty onto UK imports.


Out of curiosity what 6 year old car will you have that you estimate €1500 value? Sounds a bit low.

Wanton

VRT is Vehicle Registration Tax. Literally a tax to put a number plate on the car.
Regardless of cost of car its based on the Irish Tax offices estimate of Open Market Selling Price (as said).

The next question is what will happen around VRT and Duty due, which SHOULD be based on what was paid for the car... but I doubt the Irish government will miss a trick and will find someway of adding this tax to even on a free car.

VRT is only part of the cost.

Wanton

So if your bringing it home, you can avoid VRT yourself by registering it in your name first, there is then a period of time you have to keep it before you sell it, I am not sure if that is 6 or 12 months. If a change of ownership is completed before that time expires VRT will be due then based on the value at the time the car was imported, not when it changes owner.

jimmycrackcorm

Wanton wrote:

So if your bringing it home, you can avoid VRT yourself by registering it in your name first, there is then a period of time you have to keep it before you sell it, I am not sure if that is 6 or 12 months. If a change of ownership is completed before that time expires VRT will be due then based on the value at the time the car was imported, not when it changes owner.

He will have to produce more proof than that if having moved here, otherwise there would be a nice industry of Irish people living in Ireland, bringing a car over to register in their name. All while still living in the UK.

Wanton

Sorry. yes. I misread "drive it home" as he was "coming home".

You are 100% correct, that wont help here at all.

colm_mcm

Wanton wrote: »

The next question is what will happen around VRT and Duty due, which SHOULD be based on what was paid for the car... but I doubt the Irish government will miss a trick and will find someway of adding this tax to even on a free car.

VRT is only part of the cost.

Why should what was allegedly paid for a car be a factor. The OP is proof if needed that people would try and scam the system.

Guy:Incognito

Wanton wrote: »

The next question is what will happen around VRT and Duty due, which SHOULD be based on what was paid for the car....

Yeah and of course everyone would be totally truthful about how much they paid and there wouldn't be a slew of "my mate gave it to me for free ,therefore I don't have to pay any vrt......"

theteal

Is it possible to change ownership to the brother while you still have it over there (here, I'm in UK)? Isn't 6 months of ownership enough to avoid VRT over here? Will it still be in full-time use before you plan to drive it back?

colm_mcm

theteal wrote: »

Is it possible to change ownership to the brother while you still have it over there (here, I'm in UK)? Isn't 6 months of ownership enough to avoid VRT over here? Will it still be in full-time use before you plan to drive it back?

Transfer of residence exemption is a good bit more complicated than that

Buffman

Depending on the car it could still work out as a good deal for your brother OP if all he has to pay is the taxes.

colm_mcm wrote: »

Why should what was allegedly paid for a car be a factor. The OP is proof if needed that people would try and scam the system.

I think Wanton meant 'VAT and Duty' in that sentence, it would be interesting to see what they are for a 'free' car.