Temporary €10k BIK for EVs extended to 2025.

S

Savvy

Registered User
Messages
358
As mentioned in Tax Policy Changes


3.3.2: BIK Measure: Original Market Value Deduction for Certain Categories of Vehicles.
The temporary universal relief of €10,000 applied to the Original Market Value of a vehicle(including vans) for vehicles in Category A-D and the amendment to the lower limit of the highest mileage band is being extended to 31 December 2025.

So no BIK for EVs below €45k
 
this might be good news for Company car owners, especially ones paying BIK on high value EVS back a few years ago (OMV) that are now worth very little.

at least you can keep the EV a bit longer without been completely screwed over at trade-in.

i know lots were leased also, so not everyone
 
So now the BIK cut off drops to €20k in 2026 but no doubt there will be a change in the budget next year.
I was hoping this year they would extend the whole scheme (ie BIK cut off at €35k or €45k) for another 5 years.

at least you can keep the EV a bit longer without been completely screwed over at trade-in.
Click to expand...
As you say current changes allow company owners to depreciate the cars within the company structure but does not encourage any new EVs to be bought.
 
Last edited:
I am getting a new EV car through my employer next month. The EV OMV is €48,000, doing the calculations my BIK will be around €56 per month for the rest of 2025. ( €3,000 x 22.5%/12)

Looking ahead into 2026, the BIK will be around €525 per month ( €28,000 x 22.5%/12).

Is there a possibility that the €45,000 exemption could be extended in 2026?

I am new to BIK on cars and was hoping that an EV would reduce the tax burden, but it looks a bit bleak based on the current Finance Act.
 
There is currently no way of knowing what the government will do for budget 2026 .

One would hope that the car industry could lobby the government to get another year out of it, but this is the 2 (maybe even 3rd) budget that they have extended it.
For me personally, I'm coming out of a 3 year HP, and I'm waiting until the end of year before I make a decision, might end up going back to commercial van/pickup/crewcab.

Not many of them are BEV (iD buzz maybe)
I love BEVs and it will be hard to go back to diesel commercial because of an outdated BIK system we have in Ireland
 
For an employee with an electric vehicle, they will benefit from an overall OMV reduction of €45,000 in 2025 which includes the €35,000 electric vehicle specific reduction to OMV plus the temporary universal reduction of €10,000 i.e. a total OMV reduction of €45,000.

For 2026 and 2027, the electric vehicle OMV reduction will be €20,000 and €10,000 respectively.

Company Vehicle BIK rules from 1 January 2025

Learn about the latest BIK rules for company vehicles effective 1 January 2025, including tax reductions, emission bands, and electric vehicle benefits.
www.grantthornton.ie
 
most EVs (even 4 or 5 year second hand) will have a OMV of over 50k and a lot more will be higher.
BiK of 20000 next year will probably push company car drivers (low km ones anyway) out of EVs and back into commercial vans , because these are 8 % BIK in any of them and probably diesel because of vat off of that.. Not sure what this does to the second hand market valuations, this is a backward step for EV adaption
 
Last edited:
And there are a number of EVs (and more coming) that cost around €20K new. E.g. Dacia Spring, Hyundai Inster, etc.
 
You must log in or register to reply here.
Menu
Log in
Register