VRT and relocation expenses!!!

W

wazee1974

Registered User
Messages
33
Anyone out there know if I can use my re-location allowance I've been given for paying the VRT on a UK registered car?
 
If you are relocating permanently from the UK to Ireland and the car has been registered in your name in the UK for at least 6 months, then you have no VRT liability, AFAIK.
 
Haven't had the car for 6 months, but that would also mean I have to pay the VRT should I have to sell it within a year. In fact I haven't bought the car yet either. I thought if I buy the car use the relocation expenses to pay the VRT then sell the car on in Ireland. Hey Presto I've got the VRT back as cash for a car sale. Cheeky/dubious I know but is it "illegal".......
 
Source of your funds to pay the VRT is not relevant.

Once VRT is paid you can sell the car immediately.

Not sure you'll make any money on this however.
 
I've been given a set sum for relocation purposes, checking the revenue website if I don't use it for "relocation" purposes such as removal costs, stamp duty, temporary accomadation etc I will get taxed at 41%. I was thinking if VRT is an actual relocation expense then I will effectively recieve that money back in the form of cash for the car sale. I will actually find it quiet difficult to use the entire relocation expense up and obviously would prefer if the tax man didn't get his grubby little hands on it!!!!
 
So it sounds like VRT is not recognised by the Revenue as an acceptable (to them) relocation expense.

Buy and import a 2nd-hand commercial vehicle, 50 euro VRT, and treat yourself to 5-star temporary accommodation for a while and keep the receipts for taxation purposes. You get cheap transport, the Revenue gets no tax and you get pampered.
 
What would one need to prove residency in the UK (for 6 months?) Any web sites for info?
 
askU said:
What would one need to prove residency in the UK (for 6 months?) Any web sites for info?
Click to expand...


You need to have the car "registered" in your name not residency. Thats easy to prove fly over every so often and fill the car up with petrol, keep the reciepts and bank statements.

I didn't didn't say VRT was not exempt I was asking people if it was... Is it an actual relocation expenditure. I think it is seeing as I'd need my car here to work.

If it is I'll buy a huge BMW X5 and pay the VRT on it and then sell it in Ireland. Then buy myself a polo or smart car, or one that doesn't destroy the environment.
 
VRT isn't viewed as a relocation expense. If the level of expenses are agreed by Revenue, as being a reimbursement for outlays you would have made, what you actually do with the cash isn't relevant.
 
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