Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

139. To ask the Minister for Finance his views on allowing persons who purchased a bicycle under the cycle to work scheme but whose bicycle was subsequently stolen to purchase another bicycle under the scheme prior to the end of the five-year period that normally applies; and if he will make a statement on the matter. [32490/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The purpose of the cycle to work scheme 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.

Under the scheme an employer may provide an employee with a bicycle and/or cycle safety equipment without the employee being liable for benefit-in-kind taxation.  However, where the expenditure by the employer exceeds €1,000, the excess amount is liable to tax.

The legislation only allows for one purchase of a bicycle in respect of an employee in a 5-year period irrespective of whether the bicycle was used for the full period or not.  It operates on a self-assessing basis using straightforward rules. 

Any deviation from the current system would involve additional administrative procedures for either or both Revenue and employers in relation to the verification of loss, theft, insurance recovery, etc.  As this runs counter to the existing provisions which are administratively simple, it would not be appropriate to alter the existing scheme.

In any event, bicycles are normally covered as part of a general household insurance policy or some people may opt to have specific cover for it.  Where an insurance policy pays out for a bicycle then the stolen one may be replaced at no cost to the individual.