Drivers and Passengers with Disabilities - Tax relief scheme

Tax Relief for Vehicles Purchased for use by People with Disabilities

Part 1 - Introduction

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. This booklet provides information on the scope of the Scheme, the reliefs available and the application procedures. It does not purport to be a legal interpretation of the relevant legislation which is contained in Section 92 of the Finance Act 1989 and the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (S.I. 353 of 1994).

The main provisions of the Scheme can be summarised as follows:

  • The Scheme is open to persons who meet the specified medical criteria and have obtained a Primary Medical Certificate to that effect. They 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. The question of who can apply is addressed in Part 3 - Who can 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.
    • €15,875 for a family member of a passenger with a disability.
  • Relief is restricted to a vehicle which needs to be specially constructed or adapted for use by a person with a disability and which has an engine size up to 2,000cc in the case of a driver with a disability and up to 4,000cc in the case of a passenger with a disability.
  • A vehicle which has been relieved from tax may not be disposed of for at least two years from the date of a valid claim.
  • 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 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.

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Part 2 - Medical Qualification

Primary Medical Certificate

  1. To enter the Scheme the person with the disability must be in possession of a Primary Medical Certificate. 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. Where the SAMO is satisfied that a person meets the medical criteria a Primary Medical Certificate will be issued.
  2. Where the issue of a Primary Medical Certificate is refused, the applicant may appeal this refusal to the Disabled Drivers Medical Board of Appeal, National Rehabilitation Hospital, Rochestown Avenue, Dun Laoghaire, Co. Dublin. This is an independent Board whose decision is final. Appeals should normally be made within 28 days of refusal. Where the Board considers that the person concerned meets the criteria it will issue the required certificate. It is of course open to a person to re-apply for a Primary Medical Certificate should a change occur in his/her medical condition to the extent that the medical criteria might now be met.
  3. An applicant is normally only asked to present a Primary Medical Certificate at the time of first entry into the Scheme. However, you may, occasionally, be asked to submit a fresh certificate in respect of any subsequent claim. Revenue also have the right to refer a person for assessment to the Board of Appeal where they have reason to believe that the medical criteria specified in the Primary Medical Certificate may not be met.

It is important to note that possession of a Primary Medical Certificate is a fundamental requirement for relief under the Scheme. Without this certificate an application for relief cannot be considered.

Medical Criteria

The medical criteria for entry to the Scheme are that the person must be severely and permanently disabled and come within at least one of the following categories:

  1. Be wholly or almost wholly without the use of both legs.
  2. Be wholly without the use of one of their legs and almost wholly without the use of the other leg such that they are severely restricted as to movement of their lower limbs.
  3. Be without both hands or without both arms.
  4. Be without one or both legs.
  5. Be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg.
  6. Have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

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Part 3 - Who can apply?

The medical criteria for entry to the Scheme are that the person must be severely and permanently disabled and be in one of the following categories:

  • Drivers with Disabilities who purchase a vehicle with the intention of driving it themselves must apply as a driver with a disability. The terms and conditions for the relief for this category are set out in Part 4 - Drivers with Disabilities.
  • Passengers with Disabilities who cannot drive themselves and purchase a vehicle for their use as a passenger. The terms and conditions for the relief for this category are set out in Part 5 - Passengers with Disabilities .
  • A Family Member of a person with a disability who purchases a vehicle for the transport of that person as a passenger. The terms and conditions for the relief for this category are set out in Part 6 - Family Members

As the terms and conditions for relief vary in each category, it is important that you read this information carefully before you make an application under the Scheme and particularly before you enter into any financial commitment in respect of the purchase of a vehicle.

You may also, if you wish, discuss your entitlements with Revenue in advance.

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Part 4 - Drivers with Disabilities

Terms and Conditions

  1. You must be in possession of a Primary Medical Certificate.
  2. You 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.
  3. VRT and VAT borne in respect of the purchase and adaptation of the vehicle may be remitted or repaid up to a maximum of €9,525.
  4. You are required to keep the vehicle in your possession for at least two years. However, at the end of that period you will be entitled to make a further claim for relief if you purchase and adapt another vehicle. If you wish to change your vehicle before the end of the two year period you will be required to make a repayment to Revenue of all or part of the relief, as set out in Part 8 - Early Disposal and Audits, before relief on the replacement vehicle can be granted.
  5. Tax relief is only available in respect of a vehicle whose engine capacity does not exceed 2,000cc.
  6. A vehicle acquired under a lease agreement does not qualify under the Scheme. However, a vehicle acquired under a hire-purchase agreement or a loan qualifies for the relief.
  7. In the case of a used vehicle, the vehicle must be purchased from an authorised dealer.
  8. You may make an application for relief in respect of any of the following types of vehicle:
    • A new vehicle.
    • A used vehicle which has not been previously registered in the State.
    • A used vehicle which was previously registered in the State in which case the amount of the repayment will be the residual tax contained in the value of the vehicle.
  9. The vehicle must be registered in your name.

If the vehicle is already in your possession, i.e. if you purchased it before you qualified for relief, a repayment of VRT and VAT, appropriate to the market value of the vehicle at the time of entry to the Scheme, will be made.

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Part 5 - Passengers with Disabilities

Terms and Conditions

  1. You must be in possession of a Primary Medical Certificate.
  2. You must purchase the vehicle for your own use as a passenger and the vehicle must need to be specially constructed or adapted for you to travel in it. If you can travel in an unadapted vehicle you 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.
  3. The original cost of adaptations transferred from previously qualifying vehicles will be taken into account in calculating this percentage along with the cost of transferring those adaptations. A vehicle will not be regarded as having been adapted for this purpose solely on the basis that it contains optional extras that are readily available from manufacturers or assemblers.
  4. VRT and VAT borne in respect of the purchase and adaptation of a vehicle may be remitted or repaid up to a maximum of €15,875.
  5. You are required to keep the vehicle in your possession for at least two years. However, at the end of that period you will be entitled to make a further claim for relief if you purchase and adapt another vehicle. If you wish to change your vehicle before the end of the two year period you will be required to make repayment to Revenue of all or part of the relief, as set out in Part 8 - Early Disposal and Audits, before relief on the replacement vehicle can be granted.
  6. Tax relief is only available in respect of a vehicle whose engine capacity does not exceed 4,000cc.
  7. A vehicle acquired under a lease agreement does not qualify under the Scheme. However, a vehicle acquired under a hire-purchase agreement or a loan qualifies for the relief.
  8. In the case of a used vehicle, the vehicle must be purchased from an authorised dealer.
  9. You may make an application for relief in respect of any of the following types of vehicle:
    • A new vehicle.
    • A used vehicle which has not been previously registered in the State.
    • A used vehicle which was previously registered in the State in which case the amount of the repayment will be the residual tax contained in the value of the vehicle.

If the vehicle is already in your possession, i.e. if you purchased it before you qualified for relief, a repayment of VRT and VAT, appropriate to the market value of the vehicle at the time of entry into the Scheme, will be made.

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Part 6 - Family Members

6.1 - Terms and Conditions

  1. You must be a family member of a person who is in possession of a Primary Medical Certificate . However, relief is confined to one family member only of the person with the disability.
  2. You must reside with and be responsible for the transport of the person with the disability. Revenue may, in exceptional circumstances, waive the residency requirement.
  3. The vehicle must need to be specially constructed or adapted for the passenger to travel in it and must have been purchased primarliy 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.
  4. The original cost of adaptations transferred from a previous vehicle and the cost of transferring them will be taken into account in calculating this percentage. A vehicle will not be regarded as having been adapted solely on the basis that it contains optional extras that are readily available from manufacturers or assemblers.
  5. You are required to keep the vehicle in your possession for at least two years. However, at the end of that period you will be entitled to make a further claim for relief if you purchase and adapt another vehicle. If you wish to change your vehicle before the end of the two year period you will be required to make repayment to Revenue of all or part of the relief as set out in Part 8 - Early Disposal and Audits, before relief on the replacement vehicle can be granted.
  6. VRT and VAT borne in respect of the purchase and adaptation of a vehicle may be remitted or repaid up to a maximum of €15,875.
  7. Tax relief is only available in respect of a vehicle whose engine capacity does not exceed 4,000cc.
  8. A vehicle acquired under a lease agreement does not qualify under the Scheme. However, a vehicle acquired under a hire-purchase agreement or a loan qualifies for the relief.
  9. In the case of a used vehicle, the vehicle must be purchased from an authorised dealer.
  10. You may make application for relief in respect of any of the following types of vehicle:
    • A new vehicle
    • A used vehicle which has not been previously registered in the State
    • A used vehicle which was previously registered in the State in which case the amount of the repayment will be the residual tax contained in the value of the vehicle.

If the vehicle is already in your possession, i.e. if you purchased it before you qualified for relief, a repayment of VRT and VAT, appropriate to the market value of the vehicle at the time of entry into the Scheme, will be made.

6.2 - Waiver of The Residency Requirement

The residency requirement (see para. 6.1.2) may be waived in certain circumstances. In particular, it will normally be waived where the applicant acts as a carer for the family member with the disability.

Other factors which have been taken into consideration in the past when waiving the residency requirement include one or more of the following:

  • Proximity of the residences involved.
  • Where the residency requirement is partly met e.g. where the person with the disability is periodically in hospital or residential care.
  • The extent to which the person with the disability is dependent on the relief being granted.
  • The level of dependence of the person with the disability on the applicant for transportation particularly where the former, due to the nature of the disability or other circumstances, is unable to drive or purchase a vehicle in his/her own right.
  • The level of usage of the vehicle for the transport of the person with the disability.

Note : For persons residing in hospital or residential care you will be required to supply a list of dates (verified by the hospital or residential care unit) when the person was transported from the hospital or residential care by you in your vehicle.

Where your application for admission to the Scheme is being considered and it is deemed that the residency requirement is not being met you will be so advised and invited to make a case for its waiver. Should your application for this waiver be refused and you wish to have your case reviewed, you should write to the Customer Service Policy Unit, Bishop's Square, Redmond Hill, Dublin 2. This procedure does not affect your statutory right of appeal (Part 9 - Appeals and Further Information).

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Part 7 - How to apply for Relief

7.1 - Application Form

Application for relief under the Scheme is made on pdfForm DD1 (PDF, 125KB) which can also be obtained from the address below.

Applications for relief should be sent to:

The Office of the Revenue Commissioners
Central Repayments Office
Freepost
M: TEK II Building, Armagh Road
Monaghan
Phone: 047-62100

The above address is freepost i.e. you do not need a stamp for postal applications.

All documents received must be originals.

Relief from VAT is always by way of repayment. However, relief from VRT can be applied for either by way of remission (i.e. it is not charged when the vehicle is being registered) or repayment. Remission is dealt with in Paragraph 7.2 and repayment is dealt with in Paragraph 7.3 below.

7.2 - Application For Remission of VRT

To obtain remission of the VRT on a new vehicle or an imported unregistered vehicle, you must send the following documents to the Central Repayments Office:

  • Application pdfForm DD1 (PDF, 125KB) completed, as indicated on the form.
  • If you are claiming for the first time, the original Primary Medical Certificate.

If your application is in order, a Letter of Authorisation will issue to you. This authorises you to purchase (but not register) a vehicle and is valid for a limited period. At this stage you are now in a position to purchase a vehicle under the terms of the Scheme without paying VRT. Then, when you have decided on the vehicle you wish to purchase, the Vehicle Identification Number (VIN) of that vehicle must be returned to this Office by the motor dealer on the VIN details form that accompanied this Letter of Authorisation. When that VIN is input on our system it will generate an Exemption Certificate, which authorises registration of a vehicle exempt of VRT at the NCTS centre. Hand the Letter of Authorisation and the Exemption Certificate to the motor dealer.

In order to allow sufficient time for the issue of the Letter of Authorisation and Exemption Certificate, the  pdfForm DD1 (PDF,125KB) and the Primary Medical Certificate (for first time applicants) should be submitted to the Central Repayments Office at least ten working days in advance of purchasing the vehicle. VRT cannot be remitted unless the VIN number has been submitted to Revenue and the appropriate Exemption Certificate issued.

When you have purchased the vehicle, in order to obtain a VAT Repayment, the following documents are required by this office:-

  • The Letter of Authorisation
  • Exemption Certificate
  • An original invoice from the dealer detailing full purchase particulars of the vehicle, including the amount of VAT charged, and marked "Paid in Full".
  • An original invoice from the person who carried out the adaptations to the vehicle marked "Paid in Full". The invoice should show full details of the adaptations carried out on the vehicle and the amount of VAT charged.

The onus is on the motor dealer to ensure that the above invoices, Exemption Certificate and Letter of Authorisation are forwarded to this office following registration. Invoices should have the full name and address of the applicant and should carry the Customer ID (DP) Number of that applicant and should contain the registration number of the new vehicle.

Delay in receiving that above documents will delay your repayment.

How do I register?

When registration has been authorised, applicants are informed that an appointment must be made with the relevant NCTS Centre for examination of the vehicle. If you are a buying a new car in the State, hand this notification to the motor dealer.

If you are importing an unregistered vehicle privately, you need to contact the NCTS centre yourself.

The following documentation is required for registration

  • If a new vehicle, a Certificate of Conformity
  • The invoice itemising all adaptations that were carried out on the vehicle marked "Paid in Full"
  • The invoice for the purchase of the vehicle marked "Paid in Full"
  • Proof of Identification i.e. Driver’s Licence/ Passport of the person presenting the vehicle
  • Documentation verifying proposed registered owner’s name and address (Utility Bill, Bank Statement)
  • If the vehicle is being registered on behalf of an owner, confirmation from the owner that the vehicle may be registered by his agent
  • Letter of Authorisation and Exemption Certificate from Revenue stating that the vehicle may be registered with a remission of VRT
  • Your PPS Number
  • The PPS Number of the person to whom the vehicle is to be registered (if not you).

Normally, the above documents will be presented by the motor dealer on your behalf.

Points to Note

  • Appointment must be made with the NCTS and vehicle presented for pre-registration examination.
  • The vehicle must be adapted before registration.
  • VIN must be submitted to Revenue prior to the vehicle being presented.
  • Any difficulties with the exemption are dealt with by Revenue. If there is a problem with registering the vehicle exempt of VRT, the vehicle can be registered on payment of VRT. This VRT may later be refunded by Revenue if the claim is in order.
  • You are strongly advised to check with this office before paying the above mentioned VRT.

Imported Vehicles

In the case of an imported vehicle the above criteria also applies, if the vehicle is liable to VAT at registration, i.e. where the vehicle is less than 6 months old or has travelled less than 6,000 kms, VAT is payable at registration and the CRO will process a repayment of that VAT if applicable.

In this case the onus is on the applicant to ensure that the above documents are forwarded to this office.

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7.3 - Application For Repayment of VRT/VAT on Vehicles Currently Registered in the State

Where you wish to claim repayment (as distinct from remission) of VRT and VAT you must send the following documents to the Central Repayments Office:

  • Application pdfForm DD1 (PDF, 125KB) fully completed.
  • If you are claiming for the first time, the original Primary Medical Certificate.
  • An original invoice from the dealer detailing full purchase particulars of the vehicle and marked "Paid in Full".
  • An original invoice from the person who carried out the adaptations to the vehicle marked "Paid in Full". The invoice should show full details of the adaptations carried out on the vehicle and of the VAT charged.
  • The Vehicle Registration Certificate (also known as the Log Book or the Tax Book) for the vehicle.
  • There is no need to go through the change of ownership procedure. This will happen automatically when you tax the vehicle exempt.
  • If your claim is in order, you will be issued with a Certificate of Approval which should be presented at your local Motor Tax Office. On receipt of your new Vehicle Registration Certificate it should be forwarded to the CRO in Monaghan for endorsement, after which it will be returned to you immediately.

7.4 - Excise Duty on Fuel

  1. A refund of excise duty is available in respect of fuel, i.e. petrol, diesel or LPG, used in a vehicle which qualifies under the Scheme, up to a maximum of 2,728 litres in any twelve month period.
  2. The relief applies only to fuel used in the vehicle for the actual transport of the person with the disability.
  3. The relief from excise duty on fuel is automatically granted when a person with a disability or a family member of a person with a disability is admitted to the scheme of Tax Relief for Vehicles Purchased for use by People with Disabilities.
  4. Claims for repayment should then be made on a yearly basis on pdfForm DD3 - (PDF, 67KB) which will be automatically forwarded to you by the Fuel Section, Central Repayments Office along with the dates that your claims are due. You will be required to obtain receipts for the fuel purchased and to estimate the percentage of that fuel actually used for the transport of the person with the disability.
  5. Receipts should not accompany claims made to the Central Repayments Office. However they must be retained for a minimum of 2 years as your claim may be the subject of a Revenue audit - see: Paragraph 8.2 Audits.

7.5 - Motor Tax Exemption

A vehicle which has been admitted to the Scheme will also be entitled to an exemption from payment of annual road tax as follows:

  1. In the case of a new vehicle or a vehicle which is being registered in the State for the first time the relief will be granted on application to your local Motor Tax Office on presentation of the RF100. You do not need any documentation from this office.
  2. If the vehicle had been previously registered in the State the Central Repayments Office will issue you with a Certificate of Approval which should be presented by you to your local Motor Tax Office.

The Motor Tax Offices are listed in the telephone directory under Local Authorities.

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Part 8 - Early Disposal and Audits

8.1 - Early Disposal

  1. You are required to keep the vehicle in your possession for at least two years from the date of purchase or from the date of making the valid claim, whichever is the later. The Vehicle Registration Certificate will be endorsed to this effect.
  2. Disposal of the vehicle during this period will only be allowed on the basis that you make a refund to Revenue of all or a portion of the tax relief given, including the VRT remitted, if applicable.
  3. In this context, disposal includes the sale of the vehicle, the gift of the vehicle to another person and the hiring or renting of the vehicle, exporting the vehicle, emigration of the person with a disability, scrapping the vehicle or the death of the person with a disability.
  4. Where the vehicle is disposed of following damage in an accident, the damage will be taken into account in calculating the refund to Revenue.

8.2 - Audits

An application for relief under the Scheme may be the subject of a Revenue audit. Accordingly, a Revenue official may visit you in connection with your application in respect of either tax relief on the purchase of a vehicle or repayment of excise duty on fuel. The purpose of the audit is to ensure that the terms and conditions for the relief are complied with. If the audit establishes that you are not entitled to relief Revenue will disallow any further payments and will seek reimbursement of any benefits already granted.

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Part 9 - Appeals and Further Information

9.1 - Appeals

Where your application for relief under the Scheme is refused you will be advised of the reasons for that refusal and of your right of appeal. The appeal procedure is set out in leaflet Appeal Procedures.

9.2 - Frequently Asked Questions

  1. May vehicles that have been granted relief from taxes under the Disabled Drivers/Passengers (Tax Concessions) Regulations 1994 be used for commercial purposes.
    Any vehicle that has been granted relief from taxes under these regulations may not be used for commercial purposes.
  2. What happens in the event of the death of a Primary Medical Certificate holder prior to the registration of a vehicle under these regulations?
    The Letter of Authorisation and/or Exemption Certificate become(s) invalid and should not be used to register a vehicle unless the VRT is paid. If you register a vehicle with an invalid Exemption Notification/Letter of Authorisation, the VRT is repayable to Revenue and you will be liable to prosecution.
  3. What procedures are required on the death of the Primary Medical Certificate holder?
    The CRO should be contacted as soon as possible as relief of all taxes including motor road tax cease on the vehicle.
  4. Can I claim motor road tax exemption on more than one vehicle at a time?
    Relief of Motor Tax may only be claimed on one vehicle at a time i.e. when relief of taxes is claimed on a new vehicle after the two year limit has expired, all tax relief on the previous vehicle also ceases.
  5. If I claim as a passenger with a disability, may I drive the vehicle?
    No. If you are capable of driving a vehicle, you must claim as a driver with a disability.

Vehicles that are relieved of taxes under these regulations must be used primarily for the transportation of a qualifying person with a disability.

9.3 - Further Information

If you want further information on any aspect of the Scheme or if you need any assistance in making an application for relief, please contact:-

The Office of the Revenue Commissioners
Central Repayments Office
Freepost
M: TEK II Building,
Armagh Road
Monaghan
Phone 047-62100

Last Updated : August 2010

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