The Treasury has raised the taxable cash equivalents for company cars, vans, and fuel for the 2026/27 tax year.
The UK has increased the taxable benefits for company cars, vans, and fuel for the 2026/2027 tax year. The changes are outlined in the Van Benefit and Car and Van Fuel Benefit Order SI 2025/1254, made on 1 December 2025.
From 6 April 2026, the cash equivalent for fuel provided for a company car will rise to GBP 29,200, up from GBP 28,200. The taxable benefit for van fuel will increase to GBP 798, while the benefit for vans available for private use beyond ordinary commuting will rise to GBP 4,170, compared with GBP 4,020 previously. Vans that emit no CO2 and are used for private purposes will continue to have no taxable benefit.
The changes are made under the authority of the Income Tax (Earnings and Pensions) Act 2003. HM Revenue and Customs has published guidance on how these updated figures affect employees’ taxable earnings.
