Temporary Relaxation of BIK Rules on Company Cars & Vans
Mar 16, 2023
The Government announced last week that a temporary measure of relief would be given to reduce the BIK cost of company cars and vans in 2023. This temporary relief is as follows:
- There is a temporary reduction of €10,000 in calculating original market value, for both cars and vans.
- For electric vehicles, the existing relief of €35,000 will be increased by €10,000, meaning that the total relief for 2023 will be €45,000.
- The upper limit in the highest mileage band has been reduced by 4,000km, meaning that the highest mileage band is now entered into at 48,001km.
- These relaxations do not affect Category E vehicles.
- This relief has effect from 1st January 2023 and will extend until 31st December 2023.
This has immediate effect for 2023 payrolls, as the changes have been backdated to 1st January 2023.
It is expected that these relaxations will be introduced as the Finance Bill 2023 makes its way through the Oireachtas. This Finance Bill follows on from the recent Cost of Living measures announced by the Government.
We trust this is clear.
If you have any queries in relation to these matters, please call or email your usual PSC contact.