As announced in the Autumn Budget.
Car and fuel benefits
The taxable petrol and diesel car benefit is based on the car’s CO2 emissions. It is calculated using the car’s UK list price and applying the ‘appropriate percentage’, as shown in the table on the right. The diesel supplement increased to 4 per cent from 6 April 2018. It is removed altogether for diesel cars which are certified to the Real Driving Emissions 2 (RDE2) standard. The car fuel benefit is calculated by applying the same percentages to the fuel benefit charge multiplier, which for 2019/20 is £24,100.
2020/21 sees the introduction of a new range of bands with appropriate percentages ranging from 2 per cent to 19 per cent for ultra-low emission vehicles (ULEVs) emitting less than 75 g/km of CO2. Cars with emissions over this amount would see the appropriate percentage set at the lesser of: 20 per cent, plus 1 per cent for each 5 g/km by which emissions exceed 75 g/km; and 37 per cent.
Our experts at Beavis Morgan can ensure your tax affairs are as efficient as possible to fit your circumstances. In addition, we can look ahead to retirement and inheritance tax planning.
For more information and to discuss your tax affairs in further detail, contact your usual Beavis Morgan Partner.
| CO2 emissions (g/km) | Appropriate % | |
| Petrol % | Diesel % |
|
| 51 – 75 | 19 | 23 |
| 76 – 94 | 22 | 26 |
| 95 – 99 | 23 | 27 |
| 100 – 104 | 24 | 28 |
| 105 – 109 | 25 | 29 |
| 110 – 114 | 26 | 30 |
| 115 – 119 | 27 | 31 |
| 120 – 124 | 28 | 32 |
| 125 – 129 | 29 | 33 |
| 130 – 134 | 30 | 34 |
| 135 – 139 | 31 | 35 |
| 140 – 144 | 32 | 36 |
| 145 – 149 | 33 |
37 |
| 150 – 154 | 34 | |
| 155 – 159 | 35 | |
| 160 – 164 | 36 | |
| 165 and above | 37 | |