The Cycle To Work scheme provides an exemption from tax on the first €1,000 of expenditure incurred by an employer in connection with the provision of a bicycle or safety equipment to an employee or director. The bicycle must be for the employee/director’s personal use in undertaking the whole or part of the journey to or from work. Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.
The scheme applies to a pedal cycle, tricycle and a pedelec. A pedelec means a bicycle or tricycle which is equipped with an electric motor (with a maximum continuous rated power of 0.25 kilowatts) which cuts out when a speed of 25 kilometres per hour is reached, or sooner if the cyclist stops pedalling the bicycle or tricycle.
It should be noted that the cost of a bicycle purchased under the scheme may be more than €1,000, however the exemption from tax does not apply above this limit.
I have no plans at present for any increase in the financial limit.