Secondhand Electric Company Car OMV Question

Hi all,

If you buy a secondhand electric company car, what value would the OMV be, if the vehicle when new, attracted the €5k VRT exemption and the SEAI €5k Grant ? So if a var had an original when new cost of €40k minus €10k (grant and exemption), then it would have been impossible for anyone to have spent €40k on it and therefore, would the OMV be considered as being €30k ?

Also, is there a scale for a reduction in value based on the age of the car from new ?

Thanks in advance

Pretty sure it is the €40k as there were some surprises from people who paid less than the €50k BIK exemption for their EVs but then had to pay BIK, because the OMV was actually over €50k before the reliefs were applied.

From Revenue -

In practice, the original market value is generally considered by reference to its list price before any reliefs or grants are applied.

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-04-02.pdf#page6

Click to expand...

On the secondhand value question, the Revenue VRT calculator will give you their Open Market Selling Price (OMSP) which is probably a safe figure to use. https://www.ros.ie/evrt-enquiry/vrtenquiry.html?execution=e1s1

So if the "company" buys a six month old or 1 year old secondhand Electric Car, the BIK is still calculated on the same say €40k regardless of the age of the car when bought ?

Of course, BIK the the "employee" will be 0% anyway until the end of 2022

championc said:

So if the "company" buys a six month old or 1 year old secondhand Electric Car, the BIK is still calculated on the same say €40k regardless of the age of the car when bought ?

Of course, BIK the the "employee" will be 0% anyway until the end of 2022

Click to expand...

BIK is ALWAYS calculated based on the OMV of the car. You could buy a ten year old clapped out Merc, for 5k, but BIK would be calculated based on its original value when new.