Revenue eBrief No. 042/25

17 February 2025

Employer Provided Vehicles

Tax and Duty Manual Part 05-01-01b - Chapter 2 Employer Provided Vehicles - has been updated as follows:

• In paragraph 4.1.3 to reflect the extension of the temporary reduction to Original Market Value (OMV) to apply for the 2025 year of assessment, provided for in Finance Act 2024.
• In paragraph 4.1.4 to reflect the extension of the reduction of 4,000 kilometres in the highest mileage band from 52,001 kilometres to 48,001 kilometres, to apply for the 2025 year of assessment, as provided for in Finance Act 2024.
• A new paragraph 10 - Charge to Benefit in Kind on Electric Charging Facilities - has been added to reflect the Finance Act 2024 extension of the BIK exemption that applies for the electric charging of vehicles on an employer’s business premises, to apply also, subject to certain conditions, to the installation of a battery electric vehicle (BEV) home charger by an employer at a director’s or an employee’s private residence.

In addition to the above, the examples have been refreshed, with two new examples added to provide additional guidance - example 9 in paragraph 5.2 - Limited Use of a Van, and example 12 in paragraph 7 - Chauffeur Driven Cars. The graphic at paragraph 6.2, which summarises the applicable tax treatment for electric vehicles made available for an employee’s private use in the years 2018 to 2022 inclusive, has been changed to a table format.