Legislation
Company car and van CO2 emissions rates and bands 2026-27
Date
Effective 6 April 2026
Summary
Company cars and vans are subject to Benefit in Kind (BiK) tax, calculated based on the vehicle’s CO2 emissions. The higher emissions, the higher the tax.
Rates vary depending on fuel type and emissions levels. Below you’ll find the bands in place for the current tax year.
On 6 April 2020, a new measure was introduced called the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) for new cars first registered from 6 April 2020. This brought with it the facility to separately record the electric miles range of Ultra Low Emission Vehicles (ULEV’s) with a C02 of between 1-50g of C02 per Kilometre as well as total zero emission vehicles.
The current NEDC chart has also been updated for vehicles prior to this date but with different appropriate percentages.
Here’s the information you need to know for 2026-27:
| 2026-27 | 2026-27 | ||
|---|---|---|---|
| Registered before 6 Apr 2021 (NEDC) | Registered on or after 6th Apr 2021 (WLTP) |
||
| CO2 Emissions | Electric Range | Appropriate Percentage (%) | Appropriate Percentage (%) |
| 0g/km | 4% | 4% | |
| 1-50g/km | 130+ | 4% | 4% |
| 1-50g/km | 70-129 | 7% | 7% |
| 1-50g/km | 40-69 | 10% | 10% |
| 1-50g/km | 30-39 | 14% | 14% |
| 1-50g/km | <30 | 16% | 16% |
| 51-54g/km | 17% | 17% | |
| Each Additional 5g/km | Plus 1% | Plus 1% | |
| Non-RED2 Diesel Supplement | 3% | 3% | |
| Maximum Benefit in All Cases | 37% | 37% |
Tax fact card 2026 – 2027
Download your FREE tax fact card to find out the latest changes to payroll tax & legislation from April 2026. This PDF card includes all the key payroll rates and dates that…