Increase to van benefit charge and fuel benefit charges for cars and vans
These measures confirm the annual uprating that increase the van benefit charge and the car and van fuel benefit charges by the Consumer Price Index from 6 April 2026.
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Details
The Van Benefit and Car and Van Fuel Benefit Order 2024 (SI 2024/1349) set the charges for tax year 2025 to 2026.
It set the:
- van benefit at £4,020
- car fuel benefit multiplier at £28,200
- van fuel benefit at £769
Legislation will be introduced by statutory instrument, amending sections 150(1) and 161(b) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA). This will increase the cash equivalent of the fuel benefit charges for cars and vans respectively based on the September 2025 Consumer Price Index figure.
The value of the multiplier for calculating the cash equivalent of the fuel benefit for a car will increase to £29,200 for tax year 2026 to 2027.
The flat rate charge for the van fuel benefit will increase to £798 for tax year 2026 to 2027.
The cash equivalent where a van is capable of emitting CO2 by being driven and is made available to an employee for private use will increase to £4,170 for tax year 2026 to 2027 by making an amendment to section 155(1B)(b) of ITEPA.