UK company car tax on plug-in hybrids: 2026/27 rates and the Euro 6e-bis easement

Company car tax (benefit-in-kind, BiK) on a plug-in hybrid depends on its official CO2 figure and, from 1 to 50 g/km, on its official electric range. Real-world fuel use does not count. This page explains the 2026/27 rates and the easement for cars whose official CO2 rose under the new test.

Last checked 22 October 2026 against GOV.UK and HMRC guidance (sources below).

2026/27 BiK rates for cars with 0–50 g/km CO2

Why official CO2 is going up

Plug-in hybrids approved to the stricter Euro 6e-bis standard use a lower utility factor, so their official CO2 rises. Many move above 50 g/km and would lose the low range-based rates.

The easement (current rule)

HMRC's Employment Income Manual (EIM24710) sets out an easement that applies now. A qualifying car is treated as having CO2 of 1 g/km, so its BiK rate is set by its electric range using the table above. A car qualifies if it:

• was first registered on or after 1 January 2025 and before 6 April 2028,
• is approved to an emissions standard other than Euro 6d-ISC-FCM or Euro 6e (in practice Euro 6e-bis or later),
• has an official CO2 figure of 51 g/km or more, and
• has an official electric range of at least 1 mile.

The easement applies from 1 January 2025 to 5 April 2028. For a car already provided to an employee, it continues until the earlier of a change to the arrangement or 5 April 2031. It covers company car tax, optional remuneration (salary sacrifice) arrangements and the car fuel benefit only. It does not change vehicle excise duty or capital allowances.

From April 2028

Finance Act 2025 replaces the range-based bands for 1–50 g/km with a single rate: 18% in 2028/29 and 19% in 2029/30 (fully electric cars: 7% and 9%).

Quick check (2026/27)

General information based on the sources below, not tax advice. Check your car's documents and HMRC guidance.