3 January 2018
By Elaine Murphy
Fianna Fáil Spokesperson on Finance Michael McGrath TD (Cork South Central) has called on the Revenue Commissioners to engage with bodies representing those with disabilities on its decision to exclude vehicles acquired under a Personal Contract Plan (PCP) arrangement from qualifying for tax relief under the Disabled Drivers and Disabled Passengers Scheme.
Deputy McGrath commented, “It has come to my attention through an individual case that the Revenue has taken the view that PCPs do not qualify under this tax scheme as they are regarded as a lease and not a hire purchase agreement. I am not aware of any public statement from the Revenue on this issue and I think it is vital they make people aware of the decision to apply the tax law in this manner.
“While the interpretation of tax law is a matter for Revenue, it is important that people in the disability sector are fully informed of this approach and are consulted with. In recent years, PCPs have emerged as an extremely popular way of financing car purchases. From the beginning of 2015 to the end of July 2017, some 78,621 PCP arrangements have been entered into with an overall value of over €1.9bn. I understand that the Revenue is relying on a recent decision of the European Court of Justice to support its position.
Fianna Fáil Spokesperson on Disability Margaret Murphy O’Mahony added, “The Disabled Drivers and Disabled Passengers Scheme is an invaluable scheme for those with a disability and makes buying an adapted vehicle possible for many. It is vital that people with a disability are able to avail of this scheme when purchasing a vehicle that meets their needs. The Revenue needs to urgently engage with stakeholders in the disability sector on this issue.”