Electric Car Tax Relief Ireland

Energy research is vital for building a clean and more secure energy future for ireland.

Electric car tax relief ireland.

Plugin hybrid electric vehicles phev should have co2 emissions circa 60g km. In 2019 the treasury announced that electric company car drivers would be exempt from benefit in kind bik tax from april 2020. Reduction in transport costs compared to a comparable. You may have made an electric car available to your employee for private use during 2018.

Another key benefit of buying an electric car relates to tax. For the electric cars under 50 000. Description of car what you can claim. Everything you need to know about our electric vehicle grants.

Hybrid electric on first registration. Their value how to apply and additional incentives to help get you plugged in. 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. A hybrid with a battery that can be charged by being plugged in to the electricity grid.

You may choose. Direct co2 emission values are used to calculate the vehicle registration tax vrt and annual motor tax bands for vehicles. Learn about our research and statistics production. Different levels of vehicle registration tax vrt reductions apply to these vehicle types.

A vehicle powered from a combination of an internal combustion engine and an electric motor. Vrt is paid whenever a car is registered for the first time in ireland. 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.

Assuming the cost is greater than 24 000 the company would get tax relief of 3 000 i e. Hybrid cars do not qualify as electric cars. The maximum allowance is restricted to the lower of the cost of the vehicle or 24 000. 2019 to 2022 extension of exemption.

New and unused co2 emissions are between 50g km and 110g km. New and unused co2 emissions are 50g km or less or car is electric first year allowances. Use the car tax calculator to calculate the car tax due for any electric vehicle or find out more at our car tax microsite. Plug in hybrid electric on first registration.

Electric and hybrid vehicles. This electric car tax relief will increase to 1 in 2021 and 2 in 2022 helping businesses to forward plan their finances. Electric and alternative fuel vehicles qualify for accelerated capital allowances of 100 in the year they are purchased. 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.

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.