TAX RELIEF SCHEME
FOR DRIVERS AND PASSENGERS WITH DISABILITIES
Click on the below headings for more information.
The Disabled Drivers and Disabled Passengers Scheme provides a range of tax reliefs linked to the purchase and use of specially constructed or adapted vehicles by drivers and passengers with a disability.
Under the scheme, you can claim:
- Remission or repayment of vehicle registration tax (VRT)
- Repayment of value-added tax (VAT) on the purchase of a vehicle
- Repayment of VAT on the cost of adapting a vehicle
The maximum amount of VRT and VAT relief available under the Disabled Drivers and Disabled Passengers Scheme depends on whether you are a disabled driver or passenger and how the car has been adapted.
The maximum amount of VRT and VAT relief available under the Disabled Drivers and Disabled Passengers Scheme depends on whether you are a disabled driver or passenger and how the car has been adapted.
The maximum amounts are:
- Disabled drivers: €10,000
- Disabled passengers: €16,000
- Specifically adapted vehicles for drivers with severe disabilities: €16,000 (Specifically adapted vehicles are vehicles that need significant adaptations)
- Extensively adapted vehicles for drivers and passengers: €22,000 (Extensively adapted vehicles are vehicles that need adaptations that cost more than the open market selling price of the vehicle being adapted)
- Wheelchair accessible adaptations: €48,000 for a disabled driver and €32,000 for a disabled passenger. This is for people with disabilities who need complex and significant adaptions to their vehicles to allow in-vehicle wheelchair access. It applies to people who have paid VAT, VRT or residual VRT on or after 1 August 2022.
For disabled passengers, VRT and VAT reliefs of up to €32,000 will be provided subject to meeting the following criterion A. The vehicle must be held for six years.
For disabled drivers, VRT and VAT reliefs of up to €48,000 will be provided subject to meeting the following criteria A AND B. The vehicle must be held for six years.
‘Modified’ is defined as substantial alteration(s) to a standard vehicle component for the purposes of facilitating wheelchair accessibility.
Criterion A –
The vehicle must be a wheelchair accessible vehicle adapted to facilitate direct access of a wheelchair into that vehicle, by means of electric lift or electric ramp and a modified floor and/or modified side entry or modified rear entry, such that
(i) a disabled driver or a disabled passenger is enabled to directly transfer within the vehicle from the wheelchair to a six-way seat or equivalent
OR
(ii) The wheelchair, while occupied, can be accommodated and secured within the vehicle using a docking station and/or wheelchair restraint systems conforming to ISO standard 10542-1:2012
Criterion B –
The vehicle must be adapted to meet the specific primary and secondary control modifications as required by that disabled driver to drive that vehicle, that must include
(i) Extensive re-configuration of primary driving controls
AND
(ii) Extensive re-configuration of secondary controls
In order to be eligible for the Disabled Drivers and Disabled Passengers Scheme, you need to meet certain criteria. The main requirement is to possess a valid Primary Medical Certificate.
A Primary Medical Certificate serves as a verification of your severe and permanent disability, and one of the following conditions must apply to you:
- You have total or near-total loss of both legs’ functionality.
- You have complete loss of one leg’s functionality and near-total loss of the other leg’s functionality, to the extent that your leg movement is severely restricted.
- You have no hands or arms.
- You have no leg(s).
- You have total or near-total loss of both hands or arms, as well as complete or near-complete loss of one leg’s functionality.
- You have restricted growth syndrome (dwarfism) resulting in significant difficulties in leg movement.
When it comes to the type of vehicle, individuals with disabilities, whether drivers or passengers, can claim tax relief for the following:
- New vehicles
- Used vehicles that have not been previously registered in the country
If you decide to purchase a previously registered used vehicle, the tax relief amount will be based on the residual value-added tax (VAT) contained in the vehicle’s value. However, it’s important to note that most used vehicles bought from dealers are acquired under the Margin Scheme, which means no VAT is payable during the purchase, and therefore no VAT is refundable.
If you bought the vehicle before qualifying as a disabled driver or passenger, a repayment of VAT and vehicle registration tax (VRT) will be made based on the vehicle’s market value at the time of entry into the scheme.
For disabled passengers purchasing a used vehicle that previously qualified for tax relief under the scheme and still retains the original adaptations, it is eligible for the scheme.
To be eligible for tax relief, the engine of the vehicle must be less than 6,000cc.
In order to meet the residency requirements for tax relief under the scheme, there are certain conditions to consider:
Family Member Eligibility: If you are a family member of a disabled passenger and live with them while being responsible for their transportation, you may qualify for relief if the vehicle is acquired specifically for that purpose.
Part-Time Residency: If you only stay with a family member on a part-time basis, the residency requirement is not fulfilled. However, if you are a minor who receives residential or medical care intermittently but spends a significant portion of your time at home (e.g., every weekend and during holidays), the residency requirement may be considered as met.
Exceptional Circumstances: The Revenue Commissioners have the authority to waive the residency requirement in exceptional cases.
It is advisable to contact the Central Repayments Office to ensure that you meet the residency requirements for tax relief under the scheme before purchasing a vehicle.
The term “disposal” refers to selling, gifting, hiring, or renting out the vehicle. It is required that the vehicle must not be disposed of for a minimum period of 2 years from the date when the tax relief is granted. Additionally, you must retain ownership of the vehicle for a duration of 3 years for a specifically adapted vehicle, and 6 years for an extensively adapted vehicle or a wheelchair-accessible adapted vehicle.
However, it is possible to dispose of the vehicle within the retention period if you reimburse the Revenue Commissioners a substantial portion of the tax relief provided. The reimbursement amount is calculated based on the vehicle’s value at the time of disposal. In case the vehicle is damaged in an accident before disposal, the damage will be taken into account when calculating its value at the time of disposal.
Under the Disabled Drivers and Disabled Passengers Scheme, the maximum VRT and VAT relief amounts vary depending on whether you are a disabled driver or passenger and the extent of adaptations made to the vehicle.
The maximum relief amounts are as follows:
Disabled drivers: €10,000
Disabled passengers: €16,000
Specifically adapted vehicles for drivers with severe disabilities: €16,000 (Significant adaptations are required for these vehicles)
Extensively adapted vehicles for drivers and passengers: €22,000 (These vehicles require adaptations that cost more than the open market selling price of the vehicle being adapted)
Wheelchair accessible adaptations: €48,000 for disabled drivers and €32,000 for disabled passengers. This applies to individuals with disabilities who require complex and significant adaptations in their vehicles to enable in-vehicle wheelchair access. It is applicable to those who have paid VAT, VRT, or residual VRT on or after 1st August 2022.
Online Application:
You have the option to apply for VRT exemption or VRT and VAT repayment online through Revenue’s MyAccount platform. To begin the process, you will need to register for MyAccount on the revenue.ie website. If it is your first time applying, you will be required to upload a primary medical certificate on the MyAccount portal.
Once your application for VRT exemption is approved, your MyAccount will be updated, granting you authorization to purchase a vehicle. You will also receive an Exemption Notification, which allows you to register the vehicle as VRT-exempt. Additional documentation may be required after the vehicle purchase.
If your application is accepted for VRT and VAT repayment, you may also need to provide supplementary documentation.