Guide to the Scrappage Scheme
Please note that the scrappage scheme ended on 30 June, 2011. This information remains live for reference only. If you'd like to know more please do not hesitate to us.
The Government-backed scrappage scheme for automobiles of 10 years or older started on January 1 and runs until the 31 December 2010. It gives a €1,500 cut in Vehicle Registration Tax (VRT) on the purchase of a automobile that falls into band A or B with CO2 emissions of less than 140g/km when a suitable automobile is traded in against it.
The scheme has some conditions but most are straightforward. The automobile must have been registered in the State (i.e. Ireland) - in the name of the registered owner of the new automobile - for at least 18 months before the scrappage date and must be 10 years old or more. The automobile must be scrapped within 60 days of the new automobile being registered or 60 days before the date of the new automobile being registered.
The automobile being scrapped must have a valid NCT certificate or one that has expired no more than 90 days before the scrappage date. Automobiles that fail an NCT in the six months before scrappage can also apply.
The automobile must have been insured for road use by the owner of the automobile or their spouse for at least 12 of 18 months before the scrappage date. Automobiles imported from the UK privately must have been registered for at least 18 months before scrappage.
Such rules stop people buying a automobile for €50 and scrapping it. It must have been registered in your name for at least 18 months. This also applies to spouses. If a wife is the registered owner of a 10-year-old automobile, only she can get the discount against a new automobile and must register the new one in her name.
each of automobiles must be scrapped at an End of Life Vehicles Authorised Treatment Facility and the dealer will do this for you if you authorise them to.
The choice of automobiles under the scheme is diverse and is not limited to small automobiles. Because it is based on emissions of less than 140g/km, it will include automobiles as small as the Toyota iQ, but versions of automobiles such as the BMW 316d, Audi TT diesel and Mercedes-Benz E 200 CDi also qualify by virtue of low emissions.
The VRT reduction is up to €1,500, but in some cases is less than that if the VRT is low. For example, the total VRT on a Kia Picanto is €1,200 so this is the reduction. There is also scrappage on hybrid vehicles in addition to the €2,500 allowed on such automobiles. In the case of the Prius, the total VRT is €3,700, but with the allowance given to hybrids of €2,500 off the VRT, this VRT drops to €1,200. As this is all that remains in terms of VRT on the Prius, this is its scrappage allowance under the scheme.
Many manufacturers are also offering further reductions. Ford has €1,500 extra off its Ka and Renault, in some cases, will add €3,100 to the Government allowance.
(as found on )
How much relief is available?
VRT relief of up to €1,500 to be available on passenger automobiles registered from 1 January 2010 to 31 December 2010.
Who can apply?
Anybody who wishes to buy a new passenger automobile and has an old passenger automobile (i.e. more than 10 years old) available to scrap.
My automobile is 11 years old and recently failed the NCT. Am I eligible?
Yes, you are eligible provided your automobile failed the test in the 6 months immediately before the date of scrappage.
I have an old automobile that I no longer use. Can I apply?
Yes, provided that it has a current NCT certificate (or the NCT certificate has expired no more than 90 days previously, or the automobile has failed the test in the six months immediately before the date of scrappage) and it has been insured in your name for at least 12 months in the 18 months immediately before the date of scrappage.
I intend trading my automobile in, in three months time, but the NCT certificate expires at the end of the month. If I am going to scrap the automobile, is there any need to get a new NCT test done?
You will not need to have an NCT test done to avail of the scrappage scheme. However, it is illegal to drive a automobile on the public roads without having a valid NCT certificate, so if you intend to drive the automobile over the next three months, you must have an NCT test done.
I imported a nine-year-old automobile from Northern Ireland last year. Am I eligible?
The automobile must have been registered in Ireland for a minimum of 18 months prior to the date of scrappage. Depending on when you registered the automobile, you may not be eligible just yet but you may become eligible before the scheme finishes on 31/12/2010.
I need my old automobile to look around for the best deal. Do I have to have it scrapped before I buy a new automobile?
No. You may buy a new automobile and provided the old automobile is scrapped within 60 days of the date of registration of your new automobile you are eligible for the relief.
My wife has an old automobile. I want to buy a new one, give her my old automobile and scrap hers. Am I eligible?
Yes, if the scrapped vehicle and new vehicle are registered in either your name or in the name of your spouse, and you are either the holder of the insurance policy or a named driver on the insurance policy of your spouse for the scrapped vehicle you are eligible for the scrappage scheme.
I was away for three months last year and suspended my insurance. Am I eligible for the scheme?
Yes, provided you had insurance on the automobile for a period of 12 months in the 18 months prior to the date of scrappage.
I am a named driver on an insurance policy for my automobile. Am I eligible for the scrappage scheme?
Yes, if you are a named driver and your spouse is the insurance policy holder for the scrapped vehicle. You must either be the policy holder or the named driver on the insurance policy of your spouse for the scrapped vehicle for a period of 12 months in the 18 months prior to the date of scrappage. You are not eligible if you are the named driver on the policy of another family member, e.g. a father or sister.
My father gave me his old automobile a couple of years ago and although I have been driving it around, have paid the road tax and to all intents and purposes I am the legal owner of the automobile, I never got around to transferring ownership into my name. Am I eligible for the scrappage scheme?
No. To be eligible for the scheme, the scrapped automobile must have been registered in your name for at least 18 months before the date of registration of the new automobile.
I was involved in a small accident and my 12 year old automobile has just been written off. Am I eligible for the scrappage scheme?
Yes. As long as all the other conditions are met, the scrapped automobile does not have to be roadworthy at the time of scrappage.
Where do I scrap the automobile?
The automobile must be scrapped at an Authorised Treatment Facility (ATF). ATFs are legally bound to scrap vehicles in a controlled, environmentally friendly way, under the aegis of the Department of Environment, Heritage and Local Government. When you present your automobile for scrapping, the ATF will issue you with a Certificate of Destruction for the automobile. Unless you have a Certificate of Destruction from an ATF you will not be eligible for the relief.
Further information on how to dispose of an end-of-life vehicle is available from your local authority, (), the current list of ATFs can be found on the Repak Website.
How do I know that my automobile is actually scrapped?
The ATF is legally bound to scrap your vehicle within 10 days of issue of the certificate of destruction.
How do I know the date the automobile was scrapped?
For the purpose of this scheme the date of scrappage is the date of issue of the certificate of destruction.
My garage tells me they will take my old automobile and have it scrapped for me. Is this okay?
Yes, provided you authorise the garage to scrap the automobile on your behalf.
How do I authorise the garage to scrap the automobile on my behalf?
You will be given a form on the headed paper of the garage to complete. By signing this form you will authorise the garage to scrap the vehicle on your behalf and have a certificate of destruction for the vehicle issued in your name. Even though the garage may scrap the vehicle on your behalf, the Certificate of Destruction may issue directly to you.
A local scrap yard has offered to take the automobile off me and give me a certificate of scrappage. Will this qualify me for the scheme?
No. To be eligible for the relief you must produce a Certificate of Destruction from an Authorised Treatment Facility (ATF). Documentation from any other scrap yard will not be acceptable.
My neighbour has an old automobile he doesn't use any more. He offered to sell it to me so I can scrap it against a new automobile. Can I do this?
No. The automobile must be registered in your name for at least 18 months.
I moved to Ireland from the UK in November 2009. The automobile was registered in my name in the UK since 2007. Can I claim the relief?
No. The automobile must have been registered to you in Ireland for at least 18 months.
I am thinking of trading in my old automobile for a new hybrid. The VRT payable on the hybrid is €1,200. Will I get €1,500 VRT relief?
No. The scheme provides for relief of VRT up to a maximum of €1,500. You will not get more than the VRT actually due in respect of the new vehicle. In your case, where the VRT is less than €1,500, you will get relief of €1,200 only - the VRT that you were due to pay.
I can't find my insurance certificate for last year. Do I really need it?
You will need it to qualify. If you can't find it you will have to whatever insurance provider issued the certificate and arrange to have a duplicate certificate issued to you. The same applies to a lost vehicle licensing certificate or other documentation required.
I have all my documentation including a Certificate of Destruction ready. Who do I give them to?
Normally, you will give them to the garage where you purchase your new automobile. The garage will register your new automobile for you and allow you the VRT relief. The garage will also have to hold on to the documentation for four years to allow Revenue to examine it if necessary.
The automobile I am scrapping has a large engine and probably emits a lot of CO2. Does it qualify for the scheme?
Yes. It doesn't matter how polluting the old automobile is. However, the new automobile you are purchasing must have a CO2 emissions rating of not more than 140g/km.
Is it up to me to have the old automobile scrapped?
No. The scheme allows you to authorise the dealer to have the automobile scrapped on your behalf. Your garage will be able to prepare a letter of authorisation for you to sign to allow the vehicle to be scrapped on your behalf. If you are going to authorise the garage to scrap the vehicle on your behalf, you will surrender the automobile's Vehicle Licensing Certificate (Form RF101) to the garage.
I have an old pick-up truck. Does this qualify for the scheme?
No. To be eligible for the scheme you must scrap a passenger automobile (or "category A vehicle" as it is referred to in VRT legislation).
I have an old automobile and I am thinking of switching to a motorbike. Can I avail of the scheme?
No. To be eligible for the scheme the new automobile you purchase (and register) must be a passenger automobile with CO2 emissions of not more than 140g/km.
My motor tax doesn't expire for six months. Can I claim this back?
Yes. You may reclaim any motor tax remaining on the scrapped vehicle in excess of three months. Details of how to can be found on the Department of the Environment, Heritage and Local Government web site.