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.