Budget 2011 - VRT / SCRAPPAGE SCHEME

The scrappage scheme is being extended to 30 June 2011. The maximum relief will be reduced from €1,500 to €1,250. The original eligibility criteria remain with one small exception. The extended scheme is available to a spouse or civil partner.

The relief due to flexible fuel and hybrid vehicles is extended for two years. The maximum relief available under the new scheme is €1,500. As before the relief is on a sliding scale depending on the age of the vehicle in accordance with the following table (i.e. reduces as before by 10% per annum).

Age of vehicle	Maximum amount which may be remitted or repaid
New vehicle, first registration	€1,500
Not a new vehicle but less than 2 years	€1,350
2 years or over but less than 3 years	€1,200
3 years or over but less than 4 years	€1,050
4 years or over but less than 5 years	€900
5 years or over but less than 6 years	€600
6 years or over but less than 7 years	900
7 years or over but less than 8 years	€450
8 years or over but less than 9 years	€300
9 years or over but less than 10 years	€150
10 years or over	Nil

Light commercial vehicles charged VRT based on the EU classification scheme, which would have previously been charged at the Category C VRT rate of €50 will, from 1 January 2011, be charged the Category B rate of 13.3% of the Open Market Selling Price (OMSP).