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.