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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	29/30	28/29	27/28	26/27	25/26	24/25
g/km	Miles	%	%	%	%	%	%
0		9	7	5	4	3	2
1 – 50	130 and above	19	18	5	4	3	2
	70 – 129	19	18	8	7	6	5
	40 – 69	19	18	11	10	9	8
	30 – 39	19	18	15	14	13	12
	Under 30	19	18	17	16	15	14
51 – 54		20	19	18	17	16	15
55 – 59		21	20	19	18	17	16
60 – 64		22	21	20	19	18	17
65 – 69		23	22	21	20	19	18
70 – 74		23	22	21	21	20	19
75 – 79		23	22	21	21	21	20
80 – 84		24	23	22	22	22	21
85 – 89		25	24	23	23	23	22
90 – 94		26	25	24	24	24	23
95 – 99		27	26	25	25	25	24
100 – 104		28	27	26	26	26	25
105 – 109		29	28	27	27	27	26
110 – 114		30	29	28	28	28	27
115 – 119		31	30	29	29	29	28
120 – 124		32	31	30	30	30	29
125 – 129		33	32	31	31	31	30
130 – 134		34	33	32	32	32	31
135 – 139		35	34	33	33	33	32
140 – 144		36	35	34	34	34	33
145 – 149		37	36	35	35	35	34
150 – 154		38	37	36	36	36	35
155 and above		39	38	37	37	37	36

The appropriate percentages were frozen between 2022/23 and 2024/25, after which 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.

In 2028/29 the percentages for zero emission cars will increase to 7%, with the percentages for all cars with emissions between 1 and 50 g/km increasing to 18% regardless of their zero emission range, and the percentages for all other cars increasing by 1% up to a maximum of 38%.

In 2029/30 the percentages for zero emission cars will increase to 9%, with the percentages for all cars with emissions between 1 and 50 g/km increasing to 19% regardless of their zero emission range, and the percentages for all other cars increasing by 1% up to a maximum of 39%.

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 the maximum rates noted above.

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.

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