BMW i3 Rex, benefit in kind

hurikane wrote: »

I’m thinking of buying a second hand i3 REX via my limited company. I want to be sure it qualifies for the 0% BIK.

"Finance Act 2017 introduced an exemption from benefit-in-kind provisions in relation to electric cars. An electric car is one that derives its motive power exclusively from an electric motor."
https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-04-02-20180820093806.pdf

Pretty confident it is exempt but just wondering if anyone has experience with an i3 Rex and revenue / bik?

Rex are not exempt. If it has emissions it gets BIK.

hurikane wrote: »

The revenue definition refers to how it derives its motive power, the ICE in the Rex doesn’t drive the car, only the electric motor drives it.

Fair enough, but take it up with them.

hurikane wrote: »

I think I’ll have to, just wondering if anyone has experience with this.

It’s been discussed in tax practices a few times and gets as much erudition as here on boards. DoF/parliamentary draughtsman has screwed up with the definition. For i3 and i8, I understand that the wheels are only driven by the battery and it should qualify within the exemption (i8 would not due to value, I expect). However, absent a decision via Revenue’s tech inquiries etc, you would likely have to bear some risk on this. I’d expect a fight.

When it comes to VRT, rightly or wrongly, REX are classified as hybrid, I'd expect it's the same classification used for BIK

R.O.R wrote: »

I have years of experience with BIK. Rex is not exempt.

Personally I can't see how anybody would think otherwise, in essence its a car with a petrol engine

User1998 wrote: »

Its an electric car with a 650cc generator. You can also get it without the generator (or range extender as they call it)

Much better car too

hurikane wrote: »

The i3 Rex, derives it’s motive power from an electric motor. Revenue state that an electric car, is one that derives it’s motive power from an electric motor.

You left out the word ‘exclusively’. The thing has an engine in the boot!

Why not just get a newer i3 EV? Much less compromised car with as long range than the Rex

Henry Ford III wrote: »

If/when electric vehicles become more popular the bik and other tax treatment of them will inevitably change.

Cars are a big tax source.

From January 2023 - it's already written in to law, but there's still time for it to change:

https://data.oireachtas.ie/ie/oireachtas/act/2019/45/eng/enacted/a4519.pdf

R.O.R wrote: »

I have years of experience with BIK. Rex is not exempt.

I have 30 years of experience with tax and I believe that it is but that the Revenue does not recognise it as they’ve never been forced to!

Buddy Bubs wrote: »

Who's writing the letter to revenue?

Not BMW anyway, it’s technology that they abandoned in favour of full EV. Chevy did the same many moons ago too and I dont think any other car maker sees this as a viable option

colm_mcm wrote: »

Nissan Qashqai new model E-Power drives the wheels via the electric motor only, but the battery is charged by the engine (series hybrid) - for example. It can’t be plugged in, and ultimately relies on the petrol engine. The engine isn’t connected mechanically to the wheels though.

Interesting what Nissan are doing but it’s definitely not an EV, it’s not even a PHEV. It’s totally different in concept to the Rex in that all power has to come
from petrol, where as petrol is used in the Rex only as a backup