Hi Bronagh,

It is indeed a minefield, which is why I requested the help of Revenue to help answer the question. This was the response:

The exact treatment applicable on the importation of a vehicle into the State depends on the facts and circumstances of each case. It is not possible, based on the information you have provided, to provide definitive guidance on this matter, but I have set out below some general information which may be of assistance to you.

There are three distinct charges to consider when a vehicle is brought into Ireland from the United Kingdom (UK). These are Value Added Tax (VAT), Customs Duty and Vehicle Registration Tax (VRT). In the circumstances you have outlined below, where the vehicle has been inherited, Capital Acquisitions Tax (CAT) implications must also be considered.

VAT and Customs Duty

The VAT and Customs Duty applicable on import depends, broadly, on whether or not 1) the vehicle has ‘union goods’ status (i.e. it is originally from, or has been correctly imported into, Northern Ireland (NI) or elsewhere in the European Union (EU)), and 2) is a new means of transport (i.e. it has been in use for 6,000kms or less, or was first registered six months ago, or less).

Where a vehicle has ‘union goods’ status:

• it will not be subject to Customs Duty on import, irrespective of whether the vehicle is a new means of transport or not, but
• VAT will be levied at the time of registration where the vehicle is a new means of transport and is brought into the State from within the EU.

Where a vehicle does not have ‘union goods’ status:

• it will be subject to Irish VAT on import, irrespective of whether the vehicle is a new means of transport or not, and

• depending on its place of origin, the vehicle may also be subject to customs duty. This is the case irrespective of whether or not the vehicle is a new means of transport.

Each of these issues is addressed in some detail on the Revenue website, which is accessible here.

VRT

VRT normally applies to any passenger vehicle being registered in the State for the first time, unless a specific exemption applies. It is noted that your question relates to the inheritance of a vehicle owned by a NI resident and there is relief available on both the import of goods which have been inherited, and on an associated VRT charge.

You can find further information on exemptions from import charges on the Revenue website, which is accessible here. You will note that a vehicle may be exempt from VRT if the vehicle is brought into the State within two years of inheritance, is the property of the deceased at the time of their death, and is inherited directly under the will.

CAT 

The amount of CAT payable on a gift or an inheritance depends on the value of the gift or inheritance, the relationship between the beneficiary and the person who gave the gift or inheritance to them, and whether the beneficiary has received other gifts or inheritances within the same group threshold. Information on CAT, including details of CAT group thresholds, is published on the Revenue website and is accessible here.

Where the inheritance is also taxed in the UK, double taxation relief may be available under the terms of the double taxation treaty between Ireland and the UK in relation to the taxation of gifts and inheritances. Information on this treaty and relief from double taxation is published on the Revenue website, and is accessible here.