Logo: Arnold Clark

Previous Next

Car benefit charge

Cars registered on or after 6 April 2020

Appropriate percentage for calculating the taxable benefit of petrol, hybrid, electric, bi-fuel and other alternatively fuelled company cars.

CO₂ emissions Zero emission range 2022/23 2021/22 2020/21
g/km Miles % % %
0 2 1 0
1 – 50 130 and above 2 1 0
70 – 129 5 4 3
40 – 69 8 7 6
30 – 39 12 11 10
Under 30 14 13 12
51 – 54 15 14 13
55 – 59 16 15 14
60 – 64 17 16 15
65 – 69 18 17 16
70 – 74 19 18 17
75 – 79 20 19 18
80 – 84 21 20 19
85 – 89 22 21 20
90 – 94 23 22 21
95 – 99 24 23 22
100 – 104 25 24 23
105 – 109 26 25 24
110 – 114 27 26 25
115 – 119 28 27 26
120 – 124 29 28 27
125 – 129 30 29 28
130 – 134 31 30 29
135 – 139 32 31 30
140 – 144 33 32 31
145 – 149 34 33 32
150 – 154 35 34 33
155 – 159 36 35 34
160 – 164 37 36 35
165 – 169 37 37 36
170 and above 37 37 37

The 2022/23 appropriate percentages will apply until 5 April 2025.

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.