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No plan to cover child seats or trailers under Cycle to Work scheme

There is no plan to cover child seats and trailers under the Cycle to Work Scheme, according to response to a parliamentary question by the Minister for Finance.

Holly Cairns, a Social Democrats TD for Cork South West, asked 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.”

The Cycle to Work scheme was introduced in the Finance (No. 2) Act 2008.

In a written parliamentary answer, on the February 10, 2021, Minister for Finance, Paschal Donohoe (Fine Gael) said: “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.”

He added: “The inclusion of child seats and trailers in the scheme or would create an additional cost and that cost must be recovered elsewhere. As the Deputy may be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.” is reader-funded journalism. That means it's funded by readers like you.

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Cian Ginty

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