Dáil Éireann Debate, Wednesday - 27 May 2020
84. Deputy Cormac Devlin asked the Minister for Finance if he will consider changes to the cycle to work scheme to facilitate employees purchasing new bicycles and electric bicycles (details supplied); and if he will make a statement on the matter. [8015/20]
Amharc ar fhreagraSection 118(5G) of the Taxes Consolidation Act 1997 provides for the cycle to work scheme. This scheme provides an exemption from benefit-in-kind where an employer purchases a bicycle and associated safety equipment up to a maximum of €1,000 for an employee to use, in whole or in part, to travel to work.
The purpose of the cycle to work scheme, introduced by the Finance (No. 2) Act 2008, is to encourage more employees to cycle to and from work, or between work places, thereby contributing to lowering carbon emissions, reducing traffic congestion and improving health and fitness levels.
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 or to change the five year rule.
