Tax Rates & Allowances - Car Benefit Assessment
This information is prepared for guidance only. We recommend that you contact us for advice before acting on any information contained on this page and we cannot accept responsibility for any action taken without such advice.
Car benefit assessment 2010/11
| Charge based on a percentage of the initial list price of the car, including accessories, delivery charges and VAT. The percentage depends on the carbon dioxide emissions rating of the car, and whether the engine runs on petrol or diesel. For 2010/11, the taxable benefit on an electric car (no emissions) is nil. |
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| Ratings |
Petrol |
Diesel |
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| 0-75g/km |
5% |
8% |
| 76-120g/km |
10% |
13% |
| 121-130g/km |
15% |
18% |
| over 130g/km |
+1% for each extra 5g/km (135,140 etc.) |
| Maximum |
35% |
35% |
| |
Special rules apply to older cars which do not have a CO2 rating.
Employee contributions for private use are deducted from the taxable figure.
Company vans are charged at £3,000 if private use is more than home-to-work travel. An additional amount of £500 is charged if fuel is provided free for private use. There is no taxable benefit on an electric van. |
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| Car fuel benefit |
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| The benefit of free fuel for private use in a company car is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,000 (2009/10: £16,900). The taxable amount is therefore between £900 (min.) and £6,300 (max.). |
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