Vehicles Purchased for use by People with Disabilities

The Tax Relief for Vehicles Purchased for use by People with Disabilities Scheme provides for a range of tax reliefs in connection with the purchase and use of motor vehicles.

The Scheme is open to persons who meet the specified medical criteria and have obtained a Primary Medical Certificate to that effect. Medical assessment and issue of the required certificate is carried out by the Senior Area Medical Officer (SAMO) attached to your local Health Service Executive office. An individual can apply for relief either as a driver with a disability or a passenger with a disability. Alternatively, there is provision for a family member of a passenger with a disability to apply.

Relief in respect of Vehicle Registration Tax (VRT) and Value Added Tax (VAT) may be obtained, subject to a maximum of €9,525 for a driver with a disability, €15,875 for a passenger with a disability or €15,875 for a family member of a passenger with a disability.

In the case of drivers, the driver must, due to the nature of your disability, be unable to drive a vehicle unless it is specially constructed or adapted for that purpose. A vehicle will not be regarded as meeting the adaptation requirement solely on the basis that it contains optional extras that are readily available from manufacturers or assemblers. For example, automatic transmission is not regarded as adaptation. If you can drive an unadapted vehicle you do not come within the scope of the Scheme. Alternatively, the vehicle must need to be specially constructed or adapted for the passenger to travel in it and must have been purchased primarily for the transportation of that person. If the passenger can travel in an unadapted vehicle, they do not come within the scope of the Scheme. The tax free cost of adaptation must amount to at least 10% of the tax free cost of the vehicle. The engine size must not exceed 2,000c.c. in the case of a driver with a disability and 4,000c.c. in the case of a passenger with a disability.

Where a person receives a repayment under the Scheme the person shall undertake to use the vehicle for a period of 2 years from the date on which the Revenue Commissioners received the application for the repayment and to inform the Revenue Commissioners immediately if any circumstances arise during that period where the vehicle is sold or otherwise disposed of by that person.

A person admitted to the Scheme may also apply for a repayment of excise duty on fuel used in the vehicle, for the transport of the person with the disability, up to a maximum of 600 gallons or 2,728 litres per twelve month period. A vehicle which has been admitted to the Scheme is also exempt from the payment of annual motor tax.

If you believe this relief may be applicable to yourself or a family member, please do not hesitate to contact RDA Accountants Limited for further assistance.