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Car benefit charge

Appropriate percentage for calculating the taxable benefit of petrol, hybrid, electric, bi-fuel and other alternatively fuelled company cars.

CO₂ emissions Zero emission range 27/28 26/27 25/26 24/25 23/24
g/km Miles % % % % %
0 5 4 3 2 2
1 – 50 130 and above 5 4 3 2 2
70 – 129 8 7 6 5 5
40 – 69 11 10 9 8 8
30 – 39 15 14 13 12 12
Under 30 17 16 15 14 14
51 – 54 18 17 16 15 15
55 – 59 19 18 17 16 16
60 – 64 20 19 18 17 17
65 – 69 21 20 19 18 18
70 – 74 21 21 20 19 19
75 – 79 21 21 21 20 20
80 – 84 22 22 22 21 21
85 – 89 23 23 23 22 22
90 – 94 24 24 24 23 23
95 – 99 25 25 25 24 24
100 – 104 26 26 26 25 25
105 – 109 27 27 27 26 26
110 – 114 28 28 28 27 27
115 – 119 29 29 29 28 28
120 – 124 30 30 30 29 29
125 – 129 31 31 31 30 30
130 – 134 32 32 32 31 31
135 – 139 33 33 33 32 32
140 – 144 34 34 34 33 33
145 – 149 35 35 35 34 34
150 – 154 36 36 36 35 35
155 – 159 37 37 37 36 36
160 and above 37 37 37 37 37

The appropriate percentages are frozen at current rates until 5  April 2025. Thereafter the percentages for cars with emissions of less than 75 g/km will rise 1% each year for three years up to a maximum of 5% for electric cars and 21% for other ultra-low emission cars. The percentage for all other cars will increase by 1% in April 2025, up to the maximum of 37%, and will then be frozen for two further years.

Where a CO₂ emissions figure is not a whole number it should be rounded down to the nearest whole number, and if an electric range figure is not a whole number it should be rounded up to the nearest whole number.

All cars propelled solely by diesel are subject to a 4% supplement unless they meet the Real Driving Emissions Step 2 (RDE2) standard. However, the maximum appropriate percentage cannot exceed 37%.

Under the legislation governing Optional Remuneration Arrangements, for agreements made from 6 April 2017 if a cash allowance is offered but a company car is selected, should the CO₂ emissions of the company car exceed 75 g/km, the car benefit charge will be the greater of the annual cash allowance and the cash equivalent of the company car. When calculating the cash equivalent to be compared against the cash allowance employee contributions should be ignored.

Similar rules apply for salary sacrifice, where the amount of salary sacrifice would be compared against the cash equivalent of the company car.