Wednesday, 10 February 2021
Department of Finance
Cycle to Work Scheme
214. To ask the Minister for Finance his views on adjusting the cycle-to-work scheme to cover the purchasing of child seats or trailers; and if he will make a statement on the matter. [6883/21]
Section 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 €1,500 for e-bikes and €1,250 for other bicycles for an employee to use, in whole or in part, to travel to work. These thresholds were increased from 1 August 2020 under the Financial Provisions (Covid-19) (No. 2) Act 2020. Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.
The inclusion of child seats and trailers in the scheme would create an additional cost and that cost must be recovered elsewhere. I have no plans at present to make changes to the cycle to work scheme to include child seats and trailers.