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 generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).
The overall maximum percentage is capped at 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.
2025/26
CO2 emissions g/km
% of list price taxed
0
3
1 – 50
Electric range
130 or more
3
70 – 129
6
40 – 69
9
30 – 39
13
under 30
15
51 – 54
16
55-59
17
60-64
18
65-69
19
70-74
20
75-79
21
80-84
22
85-89
23
90-94
24
95-99
25
100-104
26
105-109
27
110-114
28
115-119
29
120-124
30
125-129
31
130-134
32
135-139
33
140-144
34
145-149
35
150-154
36
155 and above
37
2024/25
The car benefit is calculated by multiplying the car’s list price, when new, by a percentage linked to the car’s CO 2 emissions.
For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).
The overall maximum percentage is capped at 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.
2024/25
CO2 emissions g/km
% of list price taxed
0
2
1 – 50
Electric range
130 or more
2
70 – 129
5
40 – 69
8
30 – 39
12
under 30
14
51 – 54
15
55-59
16
60-64
17
65-69
18
70-74
19
75-79
20
80-84
21
85-89
22
90-94
23
95-99
24
100-104
25
105-109
26
110-114
27
115-119
28
120-124
29
125-129
30
130-134
31
135-139
32
140-144
33
145-149
34
150-154
35
155-159
36
160 and above
37
Car Fuel Benefits
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 2025/26
Fuel charge multiplier
£28,200
Car fuel benefit 2024/25
Fuel charge multiplier
£27,800
Van Benefits
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.
A reduced benefit charge may apply to vans which cannot emit CO2 when driven.
Van benefits 2025/26
Van benefit
£4,020
Fuel benefit
£769
Van benefits 2024/25
Van benefit
£3,960
Fuel benefit
£757
Disclaimer
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.
Registered as auditors and regulated for a range of investment business activities in the United Kingdom by the Association of Chartered Certified Accountants
Company Information Walker Thompson is a trading name of Walker Thompson Ltd registered in England and Wales. Company registration number 06574838
Registered Office Empress House :: 43a Binley Road :: Coventry CV3 1HU :: T 024 7663 5522 :: F 024 7663 5518 :: E clientcare@walkerthompson.co.uk
