| Company Car Emissions Information |
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The Government is committed to reducing emissions of carbon dioxide
(CO2) from cars and improving local air quality. CO2 is a major
source of greenhouse gases, which contribute to climate change.
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If your employer provides you with free fuel for your private motoring in your proposed company car, there is a fuel benefit charge. The fuel benefit charge operates completely independently from the rules of taxing company cars. It does not extend to fuel provided for private use in employees' own cars.
On the 17th April 2002 Chancellor of the Exchequer Gordon Brown published his 2002 Budget Report. In this Report the Chancellor announced the new Fuel Scale Charges tax regime on free fuel provided to company car users to reflect carbon dioxide emissions (CO2).
The new system has the following features:
* The percentages for petrol and diesel range from a minimum of 15%, to a maximum of 35% of an HM Revenue & Customs set figure of £14,400 details of which are shown in the respective tax year shown in the table below. The charge started, for 2003/04, at 15% where a car emits 155 grams per kilometre of carbon dioxide rising in 1 per cent steps for every additional 5 grams per kilometre emitted, to a maximum of 35%;
* Diesel cars which meet Euro IV standards will be allowable for a 3% discount in the diesel rates below, but the maximum charge will stay at 35%. However, for 2006/07, no waiver for Euro IV diesels registered on or after 1st January 2006;
* The exact carbon dioxide figure will be rounded down to the nearest 5g/km for fuel scale charge tax purposes;
* The percentage for alternative fuel and hybrid cars can be below 15% with
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| Fuel benefit charge 2011/12 |
| CO2 emissions in grams per kilometre |
Percentage of HMRC set figure (£18,800) taxed |
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Petrol |
Diesel |
| ≤75 |
5 |
8 |
| 120 |
10 |
13 |
| 125 |
15 |
18 |
| 130 |
16 |
19 |
| 135 |
17 |
20 |
| 140 |
18 |
21 |
| 145 |
19 |
22 |
| 150 |
20 |
23 |
| 155 |
21 |
24 |
| 160 |
22 |
25 |
| 165 |
23 |
26 |
| 170 |
24 |
27 |
| 175 |
25 |
28 |
| 180 |
26 |
29 |
| 185 |
27 |
30 |
| 190 |
28 |
31 |
| 195 |
29 |
32 |
| 200 |
30 |
33 |
| 205 |
31 |
34 |
| 210 |
32 |
35 |
| 215 |
33 |
35 |
| 220 |
34 |
35 |
| 225 |
35 |
35 |
Source: HM
Revenue
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