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Car benefit charge

Up to 5 April 2020

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

CO₂ emissions 2019/20 2018/19
g/km % %
0 – 50 16 13
51 – 75 19 16
76 – 94 22 19
95 – 99 23 20
100 – 104 24 21
105 – 109 25 22
110 – 114 26 23
115 – 119 27 24
120 – 124 28 25
125 – 129 29 26
130 – 134 30 27
135 – 139 31 28
140 – 144 32 29
145 – 149 33 30
150 – 154 34 31
155 – 159 35 32
160 – 164 36 33
165 – 169 37 34
170 – 174 37 35
175 – 179 37 36
180 and above 37 37

From 6 April 2018 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, if 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.