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”).

For 2020/21 a new range of scale charges has been introduced for hybrid cars whose emissions are 50g/km or less. The scale charge takes into account the zero-emission range of the car, and also whether the car was first registered before, or after 6 April 2020. For cars registered before 6 April 2020 emissions were measured under the New European Driving Cycle (“NEDC”). For all new cars registered from 6 April 2020 the CO2 emissions are based on the Worldwide harmonised Light Vehicle Test Procedure (“WLTP”). For 2020/21 the WLTP benefit scale charge is 2% less than the NEDC rates. For 2021/22 the WLTP rates are 1% less than the NEDC rates and for 2022/23 onwards the WLTP rates and NEDC rates are harmonised.

The car benefit scale charges for 2020/21 are as follows:

Cars Registered before 6 April 2020

Cars Registered After 5 April 2020:

The car benefit rates for 2022/23, 2023/24 and 2024/25 are as follows:

Cars Registered before 6 April 2020:

Cars Registered After 5 April 2020

* 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, as follows:

The scale charges for cars with no CO2 emission figures are as follows:

2020/21 and 2021/22

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 are as follows:

2020/21 and 2021/22:

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 the car was made available to the employee during the tax year.