• 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 3% supplement but the maximum is 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 2017/18

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  18
 100  19
 105  20
 110  21
 115  22
 120  23
 125  24
 130  25
 135  26
 140  27
 145  28
 150  29
 155  30
 160  31
 165  32
 170  33
 175  34
 180  35
 185  36
 190 and above

Car fuel benefit 2017/18

• 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 2017/18
 Fuel charge multiplier

Van benefit per vehicle 2017/18

• 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 2017/18
 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.