Dáil Éireann Debate, Thursday - 22 September 2022
207. Deputy Joe O'Brien asked the Minister for Finance if he will consider reviewing the criteria of the bike-to-work scheme to allow for second-hand bikes to be purchased under the scheme, in the context of the Government’s new circular on economy priorities. [46411/22]
View answerAs the Deputy is aware, section 118(5G) of the Taxes Consolidation Act 1997 (TCA 1997) provides for the Cycle to Work scheme. This scheme provides an exemption from benefit-in-kind (BIK) where an employer purchases a bicycle and associated safety equipment up to a maximum of €1,250 (€1,500 in the case of e-bikes), for an employee to use, in whole or in part, to travel to work. Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.
From 1 August 2020, this exemption was increased from €1,000 to €1,250 for expenditure incurred by an employer in connection with the provision of a bicycle and/or bicycle safety equipment in respect of any one employee. A higher exemption limit of €1,500 applies in the case of the provision of an electric bike (which may also include bicycle safety equipment). These increases and the change to a 4-year period from a 5-year period were in line with the commitment made in the Programme for Government.
The Cycle to Work scheme operates on a self-administration basis. Relief is automatically available provided the employer is satisfied that the conditions of its particular scheme meet the requirements of the legislation. As the Deputy has noted, one of the conditions of the scheme is that the bicycle and safety equipment must be unused and not second-hand. The Deputy may also be aware that the Department of Transport published an examination of the scheme in November 2021 as part of the Spending Review series.
The Deputy will appreciate that it would not be appropriate for me to comment at this time, on what changes, if any, are being considered in terms of this relief or any other tax relief.
