Written answers

Tuesday, 23 February 2010

Department of Finance

Car Scrappage Scheme

9:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 170: To ask the Minister for Finance if he will reply to correspondence (details supplied). [8828/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The provisions of the car scrappage scheme as set out in Section 102 of the Finance Bill as published on 4 February 2010, provide that the car being scrapped, must be registered in the State in the name of the registered owner of the new car for at least 18 months previous to the date of scrappage; must be 10 years old or more from the date of first registration; must be scrapped on or after 10 December 2009 and not later than 31 December 2010; must be scrapped within 60 days of the date of the new car being registered, or have been scrapped within 60 days immediately before the date of the new car being registered; must have a valid NCT test certificate, or one that has expired no more than 90 days immediately before the date of scrappage or documentation to indicate that it has been presented for and failed an NCT roadworthiness test in the previous 6 months; and must have been insured for use on the road in the name of the registered owner for at least 12 months in the 18 months immediately prior to the date of scrappage.

Since the inception of the scrappage scheme on 1 January 2010, it has become clear that many vehicles are acquired for use as 'family vehicles' and are frequently registered for VRT purposes in the name of one spouse, but insured in the name of the other spouse. Accordingly, the scope of the scheme under Section 102 of the Bill, is being extended by providing that any reference to a "person" in the relevant subsection of the section may in the application of those provisions be construed by the Revenue Commissioners as a reference to either the person concerned, or to that person's spouse. Consequently documentation in the name of one spouse is to be taken into account for the purposes of the other qualifying under the scheme. Following this change, documents relating to vehicle ownership and vehicle insurance may be presented in the name of either spouse in order to qualify for the repayment of VRT.

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