Since 6 April 2015, a reduction in the Van Benefit Charge (VBC) has applied for zero-emission vans.

This is a freeview 'At a glance' guide to the van benefit charge exemption for zero-emission vans. 

A reduction in the Van Benefit Charge (VBC) applies for zero-emission vans.

The rate charged as a proportion of the full rate is as follows:

Tax year % of full van benefit charge
2015-16 20%
2016-17 20%
2017-18 20%
2018-19 40%
2019-20 60%
2020-21  80%
2021-22 0%
2022-23 0%
2023-24 0%
2024-25 0%

 

For example:

The Van benefit charge (VBC) for vehicles that have CO2 emissions is £3,960 in 2023-24.

The VBC for a zero-emission van for that year will be £0 (£3,960 @ 0%). 

Small print and links

Van Benefit Charges
A taxable benefit in the form of a Van Benefit Charge (VBC) arises when an employee is provided with a company van and it is used for personal journeys.

Legislation is included in ITEPA 2003 Sections 154 to 159 and Finance Act 2021


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