James Bannon (Longford-Westmeath, Fine Gael)
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Question 133: To ask the Minister for Finance the reason a person (details supplied) in County Longford who lived in the UK but returned to live with their parents here due to ill health, should be charged €4,088 VTR on a second-hand car costing €6,000, which they bought while on a visit to the UK in December 2008; and if he will make a statement on the matter. [16275/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the person in question declared the vehicle for registration at Tullamore Vehicle Registration Office on 24 March 2009. The V5 UK registration document, which was presented in support of the application, was issued on 24 February 2009 by the UK Authorities and shows the date of acquisition of the vehicle as 12 February 2009.

Since 1 July 2008 Vehicle Registration Tax (VRT) is based on the CO2 emissions from a car and is calculated as a percentage of the Open Market Selling Price in the State, which was €11,357 in the case of this vehicle. The CO2 emissions specified on the supporting documentation attracted the highest rate of VRT of 36% resulting in a charge of €4,088.

In relation to the person having resided in the United Kingdom, the Permanent Relief (including exemption from VRT) under Transfer of Residence Regulations provides that, in the case of VRT, a person must have had their normal residence outside the State at the time of transfer and have had possession of and have actually used the vehicle outside the State for at least 6 months before your transfer to Ireland. Consequently, the person in question does not satisfy the necessary criteria in this regard.