Michael McGrath (Cork South Central, Fianna Fail)
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160. To ask the Minister for Finance if the Revenue Commissioners are re-examining the classification of personal contract plan, PCP, arrangements as lease agreements as opposed to hire purchase agreements for the purpose of the disabled drivers and passengers tax concession scheme; and if he will make a statement on the matter. [23179/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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The qualifying provisions for the Disabled Drivers and Passengers Scheme are contained in Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994). Regulations 8 (disabled drivers), 10 (disabled passengers) and 12 (organisations) provide that a vehicle must be “purchased” by the person or organisation.

Revenue guidance allowed for vehicles acquired under traditional hire purchase agreements to be eligible on the basis that such agreements, by design, are intended to lead to the outright purchase of the vehicle. As such this position is consistent with the principle of a scheme member being required to purchase their vehicle. PCP finance agreements, due to the option of rolling over into a new PCP contract with a new car, is different and in practice could be considered as close if not closer to a lease finance agreement.

I am informed by Revenue that there have been a number of refusals issued in relation to PCP Finance Agreements but these are currently being reviewed to establish if they qualify for the Scheme. In conjunction, I am currently considering the position in relation to clarifying the eligibility of PCP finance agreements under the Scheme in the Regulations.