Overview
- The Financial Times reported that the chancellor and HMRC plan to reintroduce a spending limit on bikes obtained via salary sacrifice, with details expected in the 26 November Autumn Budget.
- Officials have briefed that the change would curb tax breaks for high-priced e-bikes and performance models used for leisure.
- HMRC estimates put the scheme's cost at about £130 million in 2024–25, up since the original £1,000 cap was lifted in 2019 to expand access to e-bikes.
- Industry figures, including retailer Will Pearson, warn that restricting higher-priced purchases could deter uptake of reliable e-bikes and slow green commuting goals.
- The scheme lets employees repay bike costs from gross pay before income tax and National Insurance, yielding larger savings for higher-rate taxpayers, and any revisions remain unconfirmed until the Budget.