Moving Back From London (With Car)

paul7g

Hi,

A friend told me today that after 4 years in London, he is planning on moving back to Ireland next summer, to ‘go out on his own’.

He sold his car in London 2 years ago but is now considering buying a decent car that he can bring home, with the benefit of not having to pay VRT.

He was asking for my advice on a car, and I’ve advised him on a few cars that I think will hold their value relatively well so that he can drive the car for 2-3 years and hopefully sell for the same price he paid for the car, thanks to being VRT exempt.

Can someone clarify the following please:

A - how long will he need to own the car in the UK for? I have advised 6 months.

B - can he buy the car in the UK and put it in storage (i.e - he doesn’t live in the greatest part of London and doesn’t want the concern of a car park space and security, especially if he goes for a modern classic)?

C - similar to the last question, what else does he technically need to do to avail of the free import, in terms of owning the car in the UK… I.e - when the Revenue look at the full case, he doesn’t want to have missed something and he also wants to keep everything completely above board

D - how long does he need to own it for in Ireland before he can sell it (I told him 12 months, even though he is considering holding onto it for 3 years)

E - he is moving back to Ireland to setup his own business (in the same industry he is employed in currently in London)… what actually constitutes to ‘moving back’, considering he won’t have a ‘job offer’ etc

Thanks in advance for your help.

WildWater

AFAIK

a) 6 months

b) I think it has to have a minimum milage clocked up 5/6k but not sure

c) no idea

d) 2 years

e) tax residency I would think

Possibly more complicated since Brexit.

paul7g

Thank you, much appreciated.

Now I know why he has asked me to look into it… there doesn’t seem to be any clear rule for this :-)

Marcusm

There are plenty of clear “rules” or rather law in relation to transfer of residence relief. For a layman’s explanation, read chapter 2.1 of the document linked.

as regards putting it in storage for the full period of ownership, if it is not taxed/insured and used then it would technically not qualify. The only tax Appeal Commission case on this point was someone who bought a car then spent the six months tripping around the world prior to returning. Relief was denied as the car was not used in the territory of residence. You are asked to provide proofs of employment/residence abroad ceasing and the commencement of employment/residence in Ireland. I delivered approx 100 pages of docs in support of my applications. If your friend still works and lives in the U.K. for the six months the. I’d say he’d fall through the cracks providing he can show insurance and proof of use, services or similar.

https://www.revenue.ie/en/tax-professionals/tdm/vehicle-registration-tax/vrt-manual-section-02.pdf

sonyvision

If your friend buys a car and owns it just over the 6 month limit revenue will require hard proof it was used in the UK. The requirement is on the importer to prove he was using the car not on revenue to disprove.

My sister in law came back to Ireland, had am Audi 6 years and no issues. Had bought another car and owned it 7 months before importing. The refused to accept it was used in the UK because

1. She couldn't provide a parking permit that it was used at her home in the UK.

2. No service record showing mileage had increased after purchase date.

They effectively said revenue doesn't believe you used this car during your residency in the UK and your required to pay VRT. Tough pill of 5.5k to swallow.

lmk123

I had a brand new car for exactly 6 months and 2 days before coming back and had absolutely no bother at all clearing it. I knew a few lads that did it previously so had an idea of what to have. Proof that I was working and living in London, proof that I paid tax and insurance on the car there, diesel receipts, I got it serviced once and kept the receipt, ferry receipts, proof that I was living here again, proof that I was working here. Tell him to pay for stuff with his card so that the payments show on bank statements, they can’t argue then that you’re using someone else’s receipts for diesel etc. it’s also further proof that you were definitely living there. My girlfriend was the same at the time (we both bought cars the same weekend and moved home exactly 6 months later), cleared her car too no problem. Mine would have been roughly €7k and hers €4k VRT at the time.

galwaytt

https://www.boards.ie/discussion/2058313098/moving-back-from-london-with-car

I did this, albeit a long time ago, before the words VRT were even invented.

Even then I had to produce payslips (hence working & paying tax in the UK), proof of rent, insurance, MoT, etc etc. You're going to have to prove residence and vehicle use in the UK for at least 6 months before moving here.

You're not going to get away with parking it in a lockup for 6 months whilse working (here, I assume), as they'll have your PPSN and will look at your Revenue records to see where you're domiciled, paying tax etc.