'Drivers with Disability' tax relief scheme and second hand vehicles.

T

tred

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I am posting this on behalf of a relative.

She has had a serious operation before xmas and she now has trouble with her walk.

She is in the process of getting a primary medical certificate which will then allow her to seek assisitance from the state in the purchase of a vehicle that she can drive. The problem is the docuemntation is not that clear on the revenue.ie website as always!. [broken link removed]

Whats not clear is, if she buys a vehicle say a second hand automatic, worth about 12K. Will she possibly receive a cheque back from state to the value of 9525 Euro, or is that amount only relevent regarding a new vehicle. She is trying to figure out her budget as shes not that really well off.
 
tred said:
I am posting this on behalf of a relative.

Whats not clear is, if she buys a vehicle say a second hand automatic, worth about 12K. Will she possibly receive a cheque back from state to the value of 9525 Euro, or is that amount only relevent regarding a new vehicle. She is trying to figure out her budget as shes not that really well off.
Click to expand...


1. Firstly the vehicle must be bought from a registered car dealership, ie. cant be a private seller
2. here an example of how scheme works using your €12,000 purchase figure.
a)Calculate VAT@21% first
On purchasing the vehicle for €12,000,
the VAT@21% is calculted as eg 21% of €12,000 = €2520

b) €12,000 - €2520 = €9480
c) Now VRT is calculated on this figure but there is different levels depending on the engine size of the vehicle you are buying
The rate of VRT varies depending on the engine size. Engine capacity up to 1400cc, VRT is 22.5%, 1400cc to 1901cc the rate is 25%, over 1901cc the rate is 30%.
d) taking the lowest rate of 22.5% the price would work out like this
-> 22.5% of €9480 = €2133
-> €9480 - €2133 = €7347
e) Initial price - VAT@21% - [email protected]% = €7347
€12,000 - €2520 - €2133 = €7347

This is roughly how it works, making a saving of €4653
You'll only get of the max of €9525 when car is more expensive

Also enquire about motorised transport grant which is at least €3500 or so which would come in very handy.

hope this helped!!
(wheelchair user)
 
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