Department for Transport written question – answered on 17th November 2015.

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Photo of Daniel Zeichner Daniel Zeichner Shadow Minister (Transport)

To ask the Secretary of State for Transport, if he will expand the Cycle to Work salary-sacrifice scheme to provide employees with access to tax-free physical activity accessories and personalised activity plans for themselves and their families.

Photo of Robert Goodwill Robert Goodwill Parliamentary Under-Secretary (Department for Transport)

The Finance Act 1999 and the Income Tax (Earnings and Pensions) Act 2003 introduced an annual tax exemption, which allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit. The Cycle to Work scheme is not run by Government but was created by the cycle industry to take advantage of the tax exemption. The Department, in co-operation with the then Department of Trade and Industry (DTI), HM Revenue and Customs (HMRC), Office of Fair Trading (OFT) and the cycle industry, published guidance in June 2005. As there are qualifying criteria in order to be eligible for the tax exemption, any changes to the scheme should be referred to HM Revenue and Customs.

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Graeme Hilton
Posted on 18 Nov 2015 12:42 pm (Report this annotation)

Income Tax (Earnings and Pensions) Act 2003:
Scheme Guidance (October 2011):