Electric Vehicles – Changes in BIK rules on the way!
Electric Vehicles – Changes in BIK rules on the way!
The exemption from BIK charged on the private use of electric vehicles was introduced by the Finance Act 2017. Originally, it allowed for new and used electric cars to be fully exempted for BIK purposes for the 2018 tax year.In subsequent Finance Acts, the exemption has been limited to a maximum original market value (OMV) of €50,000. In cases where the vehicle has an OMV above €50,000, partial relief is granted.
For years 2018 to 2022
OMV below €50,000During the years 2018-2022, a full BIK exemption is availableOMV Exceeding €50,000There are 3 important date categories. The categories are assigned by when the vehicle was first made available to the employee:
Pre 10th October 2017
For private use, a full exemption from BIK in the year 2018 and a partial exemption for 2019-2022 is available.
Between 10th October 2017 and 9th October 2018
For private use, a full exemption from BIK in years 2018-2020 and a partial exemption for years 2021 & 2022 is available.
Post 10th October 2018
For private use, a full exemption from BIK in 2018 and a partial exemption for years 2019-2022 is available.For years 2023 to 2025Irrespective of the OMV of the vehicle or when the vehicle was provided reduced limits are set to commence from 2023 onwards.For BIK calculation purposes;