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.