Car Benefit Assessment Tax Rates

Winters Chartered Accountants and Registered Auditors
29 Ludgate Hill
London EC4M 7JE
England, UK

Tel:
+44 (0) 20 7919 9100

Fax:
+44 (0) 20 7919 9019

Related Links

Company Cars Factsheet

Car and Fuel Benefits

Company cars 2005/06
CO₂ emissions (gm/km) (round down to nearest 5gm/km)	% of car’s list price taxed	Fuel benefit (£14,400 x %)
up to 140	15	2,160
145	16	2,304
150	17	2,448
155	18	2,592
160	19	2,736
165	20	2,880
170	21	3,024
175	22	3,168
180	23	3,312
185	24	3,456
190	25	3,600
195	26	3,744
200	27	3,888
205	28	4,032
210	29	4,176
215	30	4,320
220	31	4,464
225	32	4,608
230	33	4,752
235	34	4,896
240 and above	35	5,040

Company cars

For diesel cars add a 3% supplement, but maximum still 35%. Until 5.4.06 supplement waived for Euro IV diesels.
Discounts apply to certain environmentally friendly cars.
For cars registered before 1.1.98 charge is based on engine size.
The list price includes accessories and is subject to an upper limit of £80,000.
List price is reduced for capital contributions made by the employee up to £5,000.

Fuel benefits

The fuel benefit 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.

Van benefit per vehicle - 2005/06 and 2004/05
Vehicles under 4 years old £500	Vehicles at least 4 years old £350
Notes For 2005/06 the charge only applies if there is unrestricted private use of the van. Van benefits include fuel for private use.

Mileage Allowance Payments

Cars and vans	2005/06 and 2004/05 Rate per mile
Up to 10,000 miles	40p
Over 10,000 miles	25p
Bicycles	20p
Motorcycles	24p

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Disclaimer
The information on these tax rates is based upon the 2005 Budget and other earlier announcements and may be subject to amendment by the Finance Act

If you would like to find out more about our services and how we might be able to assist you, please complete the tax contact form .
We can then have the relevant specialist contact you to briefly discuss your needs. Any such telephone discussion, and of course, any further initial consultation is entirely complimentary.