The governing body said in a statement on Thursday that none of the lottery-funded kit and equipment has been given away, sold for profit or even left the National Cycling Centre.
British Cycling did say, however, that some out of date and unworn kit, provided by commercial partners, is sold at 'jumbles' and that they could not guarantee what the purchaser then did with it.
"British Cycling keeps a detailed and exhaustive inventory of all UK Sport-funded equipment - going back over 10 years - and can categorically state that no kit or equipment provided by UK Sport is, or has ever been, given away or sold on for profit, or has even left the National Cycling Centre, in Manchester," the statement read.
When it comes to kit supplied by British Cycling's commercial partners, the governing body said that records are kept of where each item goes and where it ends up at the end of the 12-month cycle.
"Our commercial partnerships are negotiated solely by British Cycling, and are designed to enable our athletes to train and compete at the highest levels at all times. Any equipment supplied in this way is booked in and out via a stock management system," the statement continued.
"New kit is issued to athletes on the programme every 12 months. At the end of every 12-month cycle, kit or equipment is recycled, or scrapped if damaged. Records are kept, which include every item of kit.
"When kit is issued, riders are informed that it is the property of the Great Britain Cycling Team, is not their personal property and should be returned when they leave the programme or when requested."
British Cycling did say that some non-current and unworn kit is sold at 'cycle jumbles' when the commercial partner consents to it, with the money going back into the the Great Britain Cycling Team funds. They said that they cannot guarantee what individual buyers then do with the kit they have purchased.
The statement ends: "The uppermost concern in our minds has always been to ensure that equipment funded by UK Sport or supplied by our commercial partners can be deployed as effectively as possible, thereby furthering the chances of success for our Olympic and Paralympic athletes."
UK Sport requested that British Cycling looked into the claims made in the Daily Mail report and as such BC say they are not able to comment on the details.
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