½Û×ÓÊÓƵ

The cash equivalent of the benefit derived from the private use of a company car is determined by applying a percentage, determined by the level of the car's carbon dioxide (CO₂) emissions, to the car's list price¹. For the percentages for the current and recent years, see T6.117. For HMRC guidance, see EIM24010–EIM25290. In keeping with the environmental objectives underpinning the tax regime, the emissions criteria have become progressively stricter over the years.

More precisely the cash equivalent is calculated by applying the steps set out below².

Step 1

Find the price of the car (see E4.620C).

Step 2

Add the price of any accessories which fall to be taken into account (see E4.620D).

Step 3

Make any deduction for capital contributions made by the employee to the cost of the car or accessories (see E4.620C). The figure arrived at after Step 3 is known as the 'interim sum'.

Step 4³

Step 5

Find the appropriate percentage for the car for the year (see below).

Step