The appropriate percentages, applied to the list price to calculate car benefits, are normally announced approximately two years in advance, in order to give certainty to industry. The rates up to and including 2013-14 have previously been announced.
For 2014-15 there will be an increase of 1% for all bands where cars emit more than 75g of CO2/km.
The 3% diesel supplement will be removed from April 2016.
In both 2015-16 and 2016-17 the percentages will increase by 2%, to a maximum of 37% (the current maximum is 35%).
From April 2015 the five year exemption for zero carbon and lower rate for ultra low carbon emissions cars will come to an end. The percentage for zero emission and all low carbon cars emitting less than 95g of CO2/km will be 13% in 2015-16 and will increase to 15% in 2016-17.
Company Car Fuel Benefits
Where employees are provided fuel for private use by their employer, the appropriate percentage is applied to a fixed sum. This increases by £1,400 to £20,200 (from £18,800) for the tax year 2012-13.
There is further commitment to increase the percentage by 2% above the rate of inflation for the tax year 2013-14. The actual figure will be announced once the September 2012 inflation figure is known.