Car Benefit Print

The benefit assessable for company cars is based on the total list price of the car when new, including accessories. The taxable benefit is calculated by multiplying the cost when new by a percentage figure which is derived from the level of carbon dioxide pollution emitted by the car, expressed as grams per kilometre (“g/km”).

The car benefit scale charges for 2018/19 and 2019/20 are set out in the tables below:

2018/19:

CO2 emissions (g/km) Percentage of list price taxable
(g/km) Non Diesel Diesel*
0 to 50 13% 17%
51 to 75 16 20
76 to 94 19 23
95 20 24
100 21 25
105 22 26
110 23 27
115 24 28
120 25 29
125 26 30
130 27 31
135 28 32
140 29 33
145 30 34
150 31 35
155 32 36
160 33 37
165 34 37
170 35 37
175 36 37
180 and over 37 37

2019/20:

CO2 emissions (g/km) Percentage of list price taxable
(g/km) Non Diesel Diesel**
0 to 50 16% 20%
51 to 75 19 23
76 to 94 22 26
95 23 27
100 24 28
105 25 29
110 26 30
115 27 31
120 28 32
125 29 33
130 30 34
135 31 35
140 32 36
145 33 37
150 34 37
155 35 37
160 36 37
165 and over 37 37

For 2020/21 a new range of scale charges is being introduced for hybrid cars whose emissions are 50g/km or less. The scale charge takes into account the zero emission range of the car.

CO2 emissions (g/km) Electric Range (Miles Percentage of list price taxable
(g/km) Non Diesel Diesel Diesel**
0  

2%

N/A
1 to 50 Over 130

70 – 129

40-69

30 – 30

Under 30

2

5

8

12

14

N/A

N/A

N/A

N/A

N/A

20%
51 to 54 15 19 23
55 16 20 26
60 17 21 27
65 18 22 28
70 19 23 29
75 20 24 30
80 21 25 31
85 22 25 32
90 23 26 33
95 24 28 34
100 25 29 35
105 26 30 36
110 27 31 37
115 28 32 37
120 29 33 37
125 30 34 37
130 31 35
135 32 36
140 33 37
145 34 37
150 35 37
155 36 37
160+ 37 37

 

* Note Diesel rates only apply to cars powered solely by diesel, and not to diesel-hybrids.

** For 2018/19 and later years the diesel supplement is removed for diesel cars that are certified to the real Driving Emissions 2 (“RDE2”) standard. For cars powered solely by diesel and registered on or after 1 January 1998 which have a registered Nitrogen Oxide (“NOx”) emissions value which exceeds the RDE2 standard, or do not have a NOx emissions value, the diesel supplement is 4%. The diesel supplement does not apply to hybrids.

The above tables apply to cars first registered on or after 1 January 1998, from which date the emission data has to be provided by the manufacturer. Where, no CO2 emission figures are available for cars first registered on or after 1 January 1998, the benefit is calculated by reference to a percentage of the cost of the car when new. The percentage charged is determined by the engine capacity.

The scale charges for cars with no CO2 emission figures has been increased from 6 April 2018, and the rates for the next 3 years will be:

2018/19:

Engine Capacity Percentage of Cost
When New
1,400cc or less 20%
1,401cc to 2,000cc 31%
Over 2,000cc 37%

2019/20:

Engine Capacity Percentage of Cost
When New
1,400cc or less 23%
1,401cc to 2,000cc 34%
Over 2,000cc 37%

2020/21:

Engine Capacity Percentage of Cost
When New
1,400cc or less 24%
1,401cc to 2,000cc 35%
Over 2,000cc 37%

For cars first registered before 1 January 1998, the benefits are also based on a percentage of the cost of the car when new, depending upon the engine capacity, and the benefits for the next 3 years are as follows:

2018/19:

Engine Capacity Percentage of Cost
When New
1,400cc or less 20%
1,401cc to 2,000cc 31%
Over 2,000cc 37%

2019/20:

Engine Capacity Percentage of Cost
When New
1,400cc or less 23%
1,401cc to 2,000cc 34%
Over 2,000cc 37%

2020/21:

Engine Capacity Percentage of Cost
When New
1,400cc or less 24%
1,401cc to 2,000cc 35%
Over 2,000cc 37%

There are special rules relating to Classic cars, which are defined as being at least 15 years old, with a market value in excess of £15,000. Where such a car is provided by the employer, the benefit is based as above, but market value is substituted for the cost when new. The value to be taken is the market value on the last day of the tax year, or the last day in the tax year when the car was made available to the employee.

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