You can claim tax relief to buy a vehicle for the purpose of transporting your permanently disable child. This is done under the Disabled Passengers Scheme. The conditions for qualifying are strict & you should get written confirmation before you go and make a purchase!
Strict criteria apply on your child meeting the residency requirement. Your child must spend a significant part of their time at home with you & must not be in full-time residency.
Additional small print is your child must meet the medical criteria and have a Primary Medical Certificate. This is a certificate that confirms your child is severely & permanently disabled. You will need to contact your Local Health Office to processes your applications for Primary Medical Certificates.
If successful then you can claim tax reliefs on:
- Vehicle registration tax (VRT)
- Value-added tax (VAT) on the purchase of a vehicle
- Repayment of VAT on the cost of adapting a vehicle.
- Up to a maximum of €15,875 for a disabled passenger.
- Refund of excise duty on fuel – maximum of 2,728 litres per year.
- Exemption from annual motor tax.
Other things to note are relief is limited to a vehicle that has an engine size of less than 4,000cc.
A car which qualifies for tax relief cannot be sold for at least two years. So don’t try get in to the car sale business! The cost of the adaptation must be 10% of the net cost of vehicle. These tax concessions do not apply for children under five.
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