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

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

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.