Tax rates & allowances

Vehicle Benefits


Taxable benefit: Chargeable value multiplied by chargeable %.

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.

Chargeable percentage:

CO2 emissions g/km Petrol Diesel
0-50 9% 12%
51-75 13% 16%
76-94 17% 20%
Above 94 Add 1% for every 5g/km
Above 189 (petrol)/ 174 (diesel) 37% maximum


Chargeable value of £3,230 (2016/17 £3,170) if private use is more than home-to-work.


Employer provides fuel for private motoring in an employer-owned:

Car: CO2-based percentage from above table multiplied by £22,600 (2016/17 £22,200).
Van: £610 (2016/17 £598).

Employee contributions do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).

Tax rates 2017-2018PDF document