SE36700 - Deductions from emoluments: capital allowances: particular items of machinery or plant: bicycles

Section 80(2) CAA 2001 (previously, Section 27(2B) CAA 1990 as amended by Section 50(2) FA 1999)

2002/03 onwards

Employees cannot claim capital allowances for a bicycle after 5 April 2002. For 2002/03 onwards, the only way an employee can get tax relief for using their own bicycle for work is by a deduction for mileage allowance relief (see SE31330 onwards).

2001/02 and earlier years

The 'necessarily' test which applies to most other items of machinery and plant (see SE36520) was removed as regards bicycles with effect from 6 April 1999. From that date, and until 5 April 2002, employees and office holders were entitled to capital allowances for a bicycle that they used in performing their duties even if they did so as a matter of personal choice.

Any journeys which satisfy the definition of 'qualifying travel' in the Schedule E expenses rule (see SE32005) count as business travel for the purpose of calculating the private use adjustment under SE36570.

For the years 1999/00 to 2001/02 :

• employees could calculate their allowable cycling expenses using Inland Revenue Authorised Mileage Rates (see SE36780)
• the balancing allowance restriction which applies to cars and motor cycles also applied to bicycles (see SE36790).