Readers’ forum: Cycle to work scheme

I read Mike Thexton’s article on the cycle to work scheme (Taxation 18 March 2021 page 20) with great interest. It occurred to me that the employer’s financial position would be even better as a result of the super deduction rules announced in the Budget because the company would obtain a deduction of 130% of the cost of the cycle.

But is that right? Section 9(2) defines qualifying expenditure for the super deduction. Subsection (d) excludes expenditure within any of the general exclusions in the Capital Allowances Act 2001 s 46(2). General exclusion 6 in s 46(2) refers to expenditure on the provision of plant or machinery for leasing ‘whether in the course of trade or otherwise’. So is making a cycle available to an employee the provision of an asset for leasing? (It does not matter that the company does not have a...