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
