Forthcoming changes to the car benefit rules

The car benefit charge for a full year is obtained by multiplying the price of the car for tax purposes (in most cases, its list price plus accessories, less capital contributions) by the 'appropriate percentage'. A more detailed guide is available for employees in the HS203 Self Assessment helpsheet (PDF 88K) and for employers in booklet 480 (PDF 368K).

This page records changes to the car benefit rules which take effect from 2013-14 onwards. It will be updated as soon as possible after any further announcements are made.

Changes from 2013-14

The lower threshold will be reduced from 120g/km to 115g/km.

The lowest appropriate percentages are still 0 per cent and 5 per cent. 10 per cent will now apply to cars with CO2 emissions of 76g/km to 94g/km.

The appropriate percentage will increase by 1 per cent for all vehicles with CO2 emissions between 95g/km and 215g/km, to a maximum of 35 per cent.

Changes from 2014-15

The lower threshold will be reduced from 115g/km to 110g/km.

The lowest appropriate percentages are still 0 per cent and 5 percent. 11 per cent will now apply to cars with CO2 emissions of 76g/km to 94g/km.

The appropriate percentage will increase by 1 per cent for all vehicles with CO2 emissions between 95g/km and 210g/km, to a maximum of 35 per cent.

Changes from 2015-16

The appropriate percentage for zero emission cars reverts to 9 per cent unless this figure is changed in any future announcement.

The special rules for cars with CO2 emissions not exceeding exactly 75g/km will be abolished.