Help Desk

Michael McAleer answers your queries.

Michael McAleer answers your queries.

From Niall Fitzpatrick:

Paying both VRT and VAT on cars here is crazy. I was instead thinking of buying a car in Britain and registering it here. I realise that this will make me liable to VRT when I register it, but isn't VRT based on the recommended list price of the car? What if, I bought a car through a British broker?

Is VRT just totally based on the Irish recommended retail price? I've also been told that if you have lived in another EU state for longer than six months and come to register your car here, you're not liable for VRT? Does that apply to someone who may buy a car from somebody coming back from Britain, for example, if they first register the car here?

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First off, you should consider the exchange rate influences on the price you will have to pay. Once you have overcome this, you then have to pay VRT on what is known as the Open Market Selling Price (OMSP) of a similar car offered for sale in this state. What you have paid for the car in Britain or even in the North has no influence on its OMSP.

When you also take into account the cost of transport, it all comes down to how much discount you can get from the broker in Britain. But it would have to be significant.

In the case of a Transfer of Residence, the Revenue Commissioners state that the car must have been owned and used in the other member state for six months by the person transferring his or her residence to Ireland. One of the conditions is that the person cannot dispose of the car for 12 months after transferring.

From Dermot Mooney:

Yesterday I paid €487 tax on my Mazda 1.8, an increase of 11.95 per cent over last year (€435). I had the impression that increases were set at 6 per cent annually by the Department of the Environment. Am I mistaken? Is there any control on annual increases?

The last increase in motor tax was by 12 per cent on all rates and introduced for cars taxed on or after January 1st this year.

According to a spokesperson for the Department of Environment, the previous increase was in April 2001 and featured a 4-6 per cent rise, depending on the size of the engine.

The only memories of plans to introduce fixed rate rises, such as the 6 per cent you refer to, are from a proposal by an earlier administration, dating back to the late 1990s. The proposal was for an annual increase of 3 per cent, with the option of a further 3 per cent rise by the local authorities. However, it was never implemented. So, sadly, there appears to be no fixed controls on motor tax increases.

From John Mc Loughlin:

Regarding, the piece on road signs - at the intersection of the Malahide Road and the N32 going towards Malahide on the Malahide Road, immediately before the intersection the posted speed limit is 30mph. Immediately after the intersection the posted speed limit is 40mph.

This is just one of many e-mails we have received on the issue of road signs since last week. All refer to similarly confusing and possibly dangerous signs and road layouts.

Yet, among all the complaints came a few very useful suggestions as to how we could overcome some of our traffic problems.

George Reynolds writes that in Spain a sign states "above 50 kph (30 mph) the next lights will be red." Apparently it refers to a system that changes the sequence of traffic lights if an approaching car is speeding. According to George, the detectors are hidden somewhere in the next kilometre and it takes only one car exceeding the limit to trigger the next set of lights to red.

So, everyone has an incentive to respect the limit, unlike here where he - or she - who moves fastest gets ahead of the red wave.

This system is found on the outskirts of towns and cities and has the effect of getting everybody to move at a regular pace. It may help put some control on the forest of traffic lights that are springing up across the State.