Revenue eBrief No. 232/22
Cycle to Work Scheme – Finance Act 2022 updates
Tax and Duty Manual – Part 05-01-01g – The Provision of bikes and safety equipment (the Cycle to Work Scheme) – has been updated in Section 7 to reflect the Finance Act 2022 amendments. The guidance now includes a definition of cargo bike for the purposes of availing of the higher exemption limit of €3,000, together with updated examples.
2.3 Cargo bicycle
A cargo bicycle is a bicycle with a frame specially designed to carry large or heavy loads, or passengers other than the rider. A container or a platform may be integrated into, or attached to, this frame in front of, or behind, the rider. An e-cargo bicycle is a cargo bicycle with a pedelec configuration. A bicycle cannot be converted into a cargo bicycle by simply attaching a container or a trailer. The frame must be specially designed to carry large or heavy loads or passengers.
3.1.1 Limits from 1 January 2023
From 1 January 2023, the exemption applies to the first €1,250 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 limit of €1,500 applies in the case of the provision of an electric bike (which may also include bicycle safety equipment).
A higher limit of €3,000 applies the bicycle provided it is a cargo or an e-cargo bike and related safety equipment.