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”).

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

CO2 Emissions Electric Range Percentage of List Price Taxable  Percentage of List Price Taxable
(g/km) (Miles) Non Diesel Diesel**
0 1% N/A
1 to 50 Over 130

70-129

40-69

30-39

Under 30

2

5

8

12

14

N/A

N/A

N/A

N/A

N/A

51 to 54 15 19%
55 16 20
60 17 21
65 18 22
70 19 23
75 20 24
80 21 25
85 22 25
90 23 26
95 24 28
100 25 29
105 26 30
110 27 31
115 28 32
120 29 33
125 30 34
130 31 35
135 32 36
140 33 37
145 34 37
150 35 37
155 36 337
160+ 37 37

Cars Registered After 5 April 2020:

CO2 Emissions Electric Range Percentage of List Price Taxable  Percentage of List Price Taxable
(g/km) (Miles) Non Diesel Diesel**
0 1% N/A
1 to 50 Over 130

70-129

40-69

30-39

Under 30

1

4

7

11

13

N/A

N/A

N/A

N/A

N/A

51 to 54 14 18%
55 15 19
60 16 20
65 17 21
70 18 22
75 19 23
80 20 24
85 21 25
90 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+ 37 37

 

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

Cars Registered before 6 April 2020:

CO2 Emissions Electric Range Percentage of List Price Taxable  Percentage of List Price Taxable
(g/km) (Miles) Non Diesel Diesel**
0 2% N/A
1 to 50 Over 130

70-129

40-69

30-39

Under 30

2

5

8

12

14

N/A

N/A

N/A

N/A

N/A

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

Cars Registered After 5 April 2020

CO2 Emissions Electric Range Percentage of List Price Taxable  Percentage of List Price Taxable
(g/km) (Miles) Non Diesel Diesel**
0 2% N/A
1 to 50 Over 130

70-129

40-69

30-39

Under 30

2

5

8

12

14

N/A

N/A

N/A

N/A

N/A

51 to 54 15 19%
55 16 20
60 17 21
65 18 22
70 19 23
75 20 24
80 21 25
85 22 26
90 23 27
95 24 28
100 25 29
105 26 30
110 27 31
115 28 32
120 29 33
125 30 34
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, as follows:

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

2020/21 and 2021/22

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 are as follows:

2020/21 and 2021/22:

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

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