Electric Car Tax Relief Ireland

This electric car tax relief will increase to 1 in 2021 and 2 in 2022 helping businesses to forward plan their finances.

Electric car tax relief ireland.

Hybrid electric on first registration. Electric company car tax. Battery electric vehicles bev have no tail pipe emissions of co2. Where this occurred no charge to bik arises in respect of any use by your employee in 2018.

Everything you need to know about our electric vehicle grants. The treatment applies to both new and used cars. In 2019 the treasury announced that electric company car drivers would be exempt from benefit in kind bik tax from april 2020. Plugin hybrid electric vehicles phev should have co2 emissions circa 60g km.

Direct co2 emission values are used to calculate the vehicle registration tax vrt and annual motor tax bands for vehicles. Description of car what you can claim. A hybrid with a battery that can be charged by being plugged in to the electricity grid. A vehicle powered from a combination of an internal combustion engine and an electric motor.

You may have made an electric car available to your employee for private use during 2018. Learn about our research and statistics production. Electric and hybrid vehicles. Electric and alternative fuel vehicles qualify for accelerated capital allowances of 100 in the year they are purchased.

New and unused co2 emissions are 50g km or less or car is electric first year allowances. Hybrid cars do not qualify as electric cars. 2019 to 2022 extension of exemption. 24 000 12 5 in the year of purchase.

Assuming the cost is greater than 24 000 the company would get tax relief of 3 000 i e. You may choose. Another key benefit of buying an electric car relates to tax. So for example a car worth 30 000 will cost an employee 2 000 a year in tax for lower rate payers and 5 200 for those on the higher rate.

The amount of company car tax payable depends on the official value of the car called the p11d the benefit in kind bik rate and the recipient s tax code. For the electric cars under 50 000. Vrt is paid whenever a car is registered for the first time in ireland. Their value how to apply and additional incentives to help get you plugged in.

Energy research is vital for building a clean and more secure energy future for ireland. Use the car tax calculator to calculate the car tax due for any electric vehicle or find out more at our car tax microsite. New and unused co2 emissions are between 50g km and 110g km. Plug in hybrid electric on first registration.

Motor tax is also cheaper on an electric car at just 120 a year compared with a rate of between 199 and 1 809 for a standard car while toll operators are also running an incentive for.