What happens at the end of the hire agreement?

GCI owns the bike for the duration of the hire but we’re contractually obliged to hire it to you.  After the hire period ends you will be offered an extended free loan.

As you will see from the table below, HMRC deems the bike package to have value up until the bike is 6 years old (for bikes over £500). Remember that GCI owns the bike and if we transfer ownership of the bike to you before its 6 years old, then a Benefit-in-Kind tax will apply.

The good news is that GCI is able to offer you the opportunity to enter into a new arrangement whereby GCI loans the bicycle to you, free-of-charge, until the bike is six years old, thus avoiding any taxation.

Under this new arrangement, the tax rules state there must be no automatic right of transfer of ownership of the bicycle. However, we will appoint you as our agent to dispose of the bicycle for us at the end of the agreement, meaning the bike will be yours to do with as you wish.

In practice nothing will change – you will still have full use of the bicycle as you did under the previous arrangement.