Revenue eBrief No. 253/25

30 December 2025

Chapter 2 Employer Provided Vehicles

Tax and Duty Manual Part 05-01-01b - Chapter 2 Employer Provided Vehicles - has been updated to reflect changes to sections 121 and 121A TCA 1997, as provided for by Finance Act 2025. The main changes are as follows:

• Paragraphs 4.1.3 has been updated to reflect that the temporary reduction to the Original Market Value (OMV) has been extended to the 2026 to 2028 years of assessment (2027 and 2028 on a tapered basis), 
• Paragraphs 4.1.3, 4.1.4 and 6 and Appendix A have been updated to reflect that a new vehicle category A1, for cars with zero CO2 emissions, is introduced with effect from 1 January 2026,
• Paragraph 4.1.4 and Appendix A have been updated to reflect that a permanent reduction to 48,001 kilometres in the lower limit of the highest mileage band applies from 1 January 2026,
• The table in Paragraph 6.3.1 has been updated to show the combined impact of the temporary relief for electric vehicles and the temporary reduction to OMV,
• A new example 6 has been added to demonstrate the impact of the new vehicle category A1.

In addition to the above:

• Paragraph 10.2 been updated to provide clarity on the application of the BIK exemption in regard to the installation of a battery electric vehicle (BEV) home charger by an employer at a director’s or an employee’s private residence,
• The examples throughout the manual have been refreshed.