Tax and travel

Measures affecting vehicle-related tax and benefits.

Mileage rates

Changes to the HMRC business mileage rates are announced from time to time. The fuel only advisory rates below relate to company cars only and apply from 1 March 2021.

Engine Capacity	Petrol	Diesel	LPG
1400cc or less	10p	9p	7p
1401 - 1600cc	12p	9p	8p
1601 - 2000cc	12p	11p	8p
Over 2000cc	18p	12p	12p

For those using their own vehicle the following mileage allowance payments apply.

Vehicle	First 10,000 miles	Thereafter
Car / Van	45p	25p
Motorcycle	24p	24p
Bicycle	20p	20p

Car benefits

2021/22:

CO₂ emissions (g/km)	Cars registered pre 6.4.20	Cars registered after 5.4.20
CO₂ emissions (g/km)	% of list price taxed	% of list price taxed
0	1	1
1 - 50 electric range
>130	2	1
70-129	5	4
40-69	8	7
30-39	12	11
<30	14	13
51-54	15	14
For every extra 5	+1	+1
160 and above	37	n/a
165 and above	n/a	37

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions over 75g/km if the CO₂figure does not end in a 5 or a 0 round down to the nearest 5 or 0.

24 Apr 2024

Inheritance tax receipts hit a record high of £7.5 billion

Data published by HMRC has revealed that inheritance tax (IHT) receipts rose to a record high of £7.5 billion in the 2023/24 tax year.

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