Budget 2021 Vehicle Registration Tax

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Vehicle Registration Tax changes in Budget 2021

From January 2021 a new vehicle registration tax (VRT) rates are being introduced to use the CO2 values from a new EU emissions test for passenger cars, known as “WLTP”.

The existing 11 band table is replaced with a 20 band table with a revised rates structure.
Whereas current VRT rates range from 14% to 36%, the new VRT table has a range from 7%
to 37%. The table is shown below.

VRT Rates from 1/1/2021

BAND FROM TO VRT Rate
1 0 50 7.00%
2 51 80 9.00%
3 81 85 9.75%
4 86 90 10.50%
5 91 95 11.25%
6 96 100 12.00%
7 101 105 12.75%
8 106 110 13.50%
9 111 115 14.25%
10 116 120 15.00%
11 121 125 15.75%
12 126 130 16.50%
13 131 135 17.25%
14 136 140 18.00%
15 141 145 19.50%
16 146 150 21.00%
17 151 155 23.50%
18 156 170 26.00%
19 171 190 31.00%
20 >191 37.00%

While the VRT regime is transitioning to the new WLTP emissions test, it is still the case that
used imports pre September 2018 will have been subject to the old and discredited NEDC
emissions test. An ‘WLTP equivalent’ CO2 value will be calculated for cars subject to the NEDC test.

The ‘WLTP equivalent’ is different for petrol and diesel casts as shown below with an illustration.

Petrol: y = x(0.9227)+34.554

Diesel: y = x(1.1405)+12.858

A NEDC tested petrol car has a CO2 value of 110 g/km on the vehicle registration documentation which would attract a rate of 16%. Revenue uplifts this CO2 value to a WLTP equivalent value as follows: y = 110(0.9227) + 34.554 y = 136

This car is then subject to an 18% VRT rate.

Nitrogen Oxide (NOx) Levy

The NOx levy that is applied to all VRT category A vehicles (passenger cars, including SUVs) will change with effect from 1 January 2021. The levy will be charged cumulatively.

NOx emissions (NOx mg/km) Amount payable per mg/km
The first 0-40 mg/km €5
The next 40 mg/km or part thereof up to 80 mg/km €15
The remainder above 80 mg/km €25

Relief for Hybrid and Plug-In Hybrid Vehicles

Relief for these vehicles will expire on 31 December 2020 and will not be renewed.

Relief for Electric Vehicles (EVs)

The €5,000 relief is to be retained in full for all EVs with an open market selling price (OMSP) of up to €40,000.
Above €40,000, the relief will be reduced by 50% of the OMSP over €40,000. The relief will no longer be available
where the OMSP is €50,000 or more.

Budget 2021 Vehicle Registration Tax was last modified: October 14th, 2020 by vrtmanager

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