• The car benefit is calculated by multiplying the car's list price, when new, by a percentage linked to the car's CO2 emissions.

• For diesel cars add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets Euro 6d emissions standard)
  but the maximum is still 37%.

• The list price includes accessories.

• The list price is reduced for capital contributions made by the employee up to £5,000.

• Special rules may apply to cars provided for disabled employees.

• For cars registered before 1 January 1998 and cars with no agreed CO2 emissions the charge is based on engine size.

Car benefit 2018/19

CO2 emissions (g/km)
(round down to nearest 5g/km for values above 95)

% of car's list price taxed
 51 up to 75
 76 up to 94
 95  20
 100  21
 105  22
 110  23
 115  24
 120  25
 125  26
 130  27
 135  28
 140  29
 145  30
 150  31
 155  32
 160  33
 165  34
 170  35
 175  36
 180 and above

Car fuel benefit 2018/19

• Car fuel benefit applies if an employee has the benefit of private fuel for a company car.

• The benefit is calculated by applying the percentage used to calculate the car benefit by a 'fuel charge multiplier'.

• The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only
  if the employee pays for all private fuel.

Car fuel benefit 2018/19
 Fuel charge multiplier

Van benefit per vehicle 2018/19

• Van benefit is chargeable if the van is available for an employee's private use.

• A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.

• The charges do not apply to vans if a 'restricted private use condition' is met throughout the year.

• A reduced benefit charge may apply to vans which cannot emit CO2 when driven.

Van benefits 2018/19
 Van benefit
 Fuel benefit
'restricted private use condition'

A van benefit is not chargeable if a restricted private use condition is met throughout the tax year. The condition is met if:

• the terms on which the van is made available to the employee prohibit its private use otherwise than for the purposes of ordinary commuting
  or travel between two places that is for practical purposes substantially ordinary commuting; and
• neither the employee nor a member of their family or household makes private use of the van other than for those purposes; and
• the van is available to the employee mainly for use for the purposes of the employee’s business travel.

The last point means that the van cannot be used for commuting purposes alone.


This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.