The annual benefit is a percentage of list price, with the percentage dependent on the level of CO2 emissions.
The minimum benefit is 15% for emissions of 140g/km (140g/km) or less. This charge increases by 1% for each additional full 5g/km up to a maximum charge of 35% for emissions of 240g/km (240g/km) or more. Emission levels are rounded down to the nearest multiple of 5. List price includes certain accessories, but reduced for capital contributions of up to £5,000 (£5,000) maximum £80,000 (£80,000). For 2008/09 the level of emissions qualifying for the lower rate of 15% will be 135g/km and there will also be an additional rate of 10% for company cars with emissions not exceeding 120g/km.
Second cars are taxed in the same way as first cars.
For 2008/09 the taxable benefit of a van made available for significant private use is £3,000
Diesel supplement: for cars registered on or after 1 January 1998, 3% supplement, but maximum charge not to exceed 35%. This supplement does not apply to Euro IV compliant cars registered from 1 January 2006.
There are reduced percentages for cars running wholly or partly on alternative fuels e.g. hybrid, LPG, electricity, bi-fuel cars.
Fuel: The additional scale charge if fuel provided for private use in a car is the car benefit percentage applied to a fixed amount set at £16,900. The fuel scale charge for a van with significant private use is a flat £500 (£nil).
Climate change levy is a single stage tax on supplies of various fuels to industrial and commercial consumers.
| Rates | 2008/09 | 2007/08 |
| Electricity per kwh | 0.456p | 0.441p |
| Gas per kwh | 0.159p | 0.154p |
| Coal/Lignite/Coke/Semi Coke per kg | 1.242p | 1.201p |
| LPG per kg | 1.018p | 0.985p |