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Benefit-In-Kind tax rules overturned for company cars

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By John Healy of Healy Insurances

Minister for Finance Michael McGrath has announced a temporary change for company-owned vehicles following a backlash from drivers whose Benefit-In-Kind (BIK) taxes increased substantially in January.

While the move to a CO2 based Benefit-In-Kind system, which incentivises the use of Electric Vehicles and lower emission cars, a significant number of employees with vehicles in the typical emissions range experienced large increases in their income tax liabilities since the start of 2023.

To address the issue, the Finance Minister has introduced a relief of €10,000 to be applied to the Original Market Value (OMV) of cars in Category A-D in order to reduce the amount of Benefit-In-Kind payable (this is not applicable to cars in Category E).

In effect, this means that, for the purposes of calculating BIK liability, employers may reduce the OMV by €10,000. This treatment will also apply to all vans and electric vehicles. For electric vehicles, the OMV deduction of €10,000 will be in addition to the existing relief of €35,000 that is currently available for EVs, meaning that the total relief for 2023 will be €45,000.

The upper limit in the highest mileage band is amended by way of a 4,000km reduction, so that the highest mileage band is now entered into at 48,001km.

These temporary measures will be retrospectively applied from 1 January 2023 and will remain in place until 31 December 2023. It is proposed to introduce the measures at Committee Stage of the Finance Bill 2023.

From an insurance perspective, if a vehicle is owned by a company then the motor policy in place must be in the company name and have full business use cover known as Class 2 cover. It is customary that the policy is on an open driving basis, usually aged 25 to 70. The cost for a company owned car policy can be higher than privately owned vehicles.

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Ross Castle canal silt removal

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Ross Castle canal silt removal


Fianna Fáil TD for Kerry, Michael Cahill TD, has welcomed confirmation from the Minister for Housing, Local Government and Heritage that the National Parks and Wildlife Service (NPWS) will return to Ross Castle Canal to address the remaining silt once conditions allow.



Deputy Cahill raised the matter directly with the Minister following concerns from local boatmen regarding the significant amount of silt that had been left banked along the edge of the canal after maintenance works. They warned that, if left in place, the silt could simply be washed back into the canal during periods of heavy rainfall undoing the benefits of the recent clearance works.

In response to Deputy Cahill’s Parliamentary Question, the Minister confirmed that the NPWS had already cleared an entrance and exit route at the site when suitable weather and ground conditions allowed the work to proceed. Importantly, the Minister also confirmed that the NPWS will revisit the issue once lake levels reduce and conditions are suitable to facilitate safe access.

He said:

“I raised this issue after being contacted by local boatmen who were concerned that the silt left on the banks of the canal would inevitably be washed back into the watercourse following heavy rainfall. They made the valid point that the material had now been left long enough for aquatic wildlife to return, meaning its removal could proceed without causing unnecessary environmental disturbance.”

“I am pleased to receive confirmation that the NPWS intends to return to the site to complete the work when lake levels fall and conditions are suitable. This is a practical and sensible commitment which recognises both the environmental importance of the area and the need to maintain navigable access.”

Deputy Cahill said Ross Castle Canal is an important amenity and tourism asset within Killarney National Park and that it is essential it is properly maintained for the benefit of visitors, local businesses and the traditional boatmen who use it throughout the year.

“I will continue to engage with the NPWS to ensure these works are completed at the earliest suitable opportunity. Maintaining the canal is important not only for navigation but also for preserving one of Kerry’s most iconic tourism attractions and ensuring it remains accessible for everyone who enjoys Killarney National Park,” Deputy Cahill concluded.

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Free entry for under 18s at Ross Castle

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Free entry for under 18s at Ross Castle


Young people and families can explore Ross Castle free of charge throughout August as part of a national Office of Public Works (OPW) initiative.


The 15th-century stronghold on the shores of Lough Leane will waive admission fees for all visitors under 18 from August 1 to August 31. The scheme aims to make cultural and historic sites more accessible to young people and families during the summer holidays.
Under 18s must be accompanied by an adult. The promotion applies across fee-paying OPW heritage sites nationwide, excluding Kilmainham Gaol and Brú na Bóinne.
Minister of State with responsibility for the Office of Public Works, Kevin “Boxer” Moran, said the initiative offers young people a memorable way to connect with history, nature, and culture over the summer break.

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