Taxable benefit is chargeable value multiplied by a chargeable percentage.
Chargeable value:
Initial list price of car (including most accessories), reduced by any capital contribution (maximum £5,000) by employee when the car is first made available.
| CO2 emissions (g/km) | Scale charge |
|---|---|
| Zero | 3% |
| 1-50 – EV range 130 miles or over | 3% |
| 1-50 – EV range 70 – 129 miles | 6% |
| 1-50 – EV range 40 – 69 miles | 9% |
| 1-50 – EV range 30 – 99 miles | 13% |
| 1-50 – EV range under 30 miles | 15% |
| 51-54 | 16% |
| 55-59 | 17% |
60 and over:
Add 1% for every 5g/km
Add 4% for diesel cars
Subject to 37% maximum
Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement.
Where employer provides fuel for private motoring in an employer-owned car, CO2-based percentage from above table multiplied by £28,200 (2024/25 £27,800). Employee contributions for fuel do not reduce taxable figure unless the private fuel is paid for by the employee (in which case there is no benefit charge). Where fuel is provided for private use of company vans there is a flat rate charge of £769 (2024/25 £757).
Unless private use of a company van is insignificant, the taxable benefit for 2025/26 is £4,020 (2024/25 £3,960). Where the van has zero CO2 emissions the benefit is NIL.