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

Due to the re-homologation of plug-in hybrid electric vehicles (PHEVs) under the Euro 6e-bis standards, the CO₂ emissions of many PHEVs will increase. To mitigate the impact of these changes, a temporary tax easement will apply, retrospectively from 1 January 2025 where:

a car was first registered on or after 1 January 2025 and before 5 April 2028;
a car’s CO₂ emissions figure is 51 g/km or more;
a car was not registered under the Euro 6d-ISC-FCM or Euro 6e standards; and
a car’s electric range figure is 1 or more.

For a company car made available on or before 5 April 2028, the easement will apply subject to transitional arrangements until 5 April 2031.

This change will also reduce the Class 1A NIC payable by employers.

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.