Electric Car Tax Relief Ireland

For the electric cars under 50 000.

Electric car tax relief ireland.

Hybrid electric on first registration. Everything you need to know about our electric vehicle grants. Reduction in transport costs compared to a comparable. 2019 to 2022 extension of exemption.

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. The maximum allowance is restricted to the lower of the cost of the vehicle or 24 000. Electric company car tax.

Energy research is vital for building a clean and more secure energy future for ireland. Another key benefit of buying an electric car relates to tax. New and unused co2 emissions are 50g km or less or car is electric first year allowances. Learn about our research and statistics production.

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. New and unused co2 emissions are between 50g km and 110g km. Description of car what you can claim. In 2019 the treasury announced that electric company car drivers would be exempt from benefit in kind bik tax from april 2020.

24 000 12 5 in the year of purchase. Different levels of vehicle registration tax vrt reductions apply to these vehicle types. Where this occurred no charge to bik arises in respect of any use by your employee in 2018. 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.

The treatment applies to both new and used cars. You may have made an electric car available to your employee for private use during 2018. Electric and hybrid vehicles. Electric and alternative fuel vehicles qualify for accelerated capital allowances of 100 in the year they are purchased.

Battery electric vehicles bev have no tail pipe emissions of co2. Direct co2 emission values are used to calculate the vehicle registration tax vrt and annual motor tax bands for vehicles. Use the car tax calculator to calculate the car tax due for any electric vehicle or find out more at our car tax microsite. Their value how to apply and additional incentives to help get you plugged in.

Plugin hybrid electric vehicles phev should have co2 emissions circa 60g km. You may choose. Hybrid cars do not qualify as electric cars. Vrt is paid whenever a car is registered for the first time in ireland.

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