Van benefit charge for zero-emission vehicles remains at 20% rate. 

When a van is made available to an employee by reason of his employment and is also made available for private use (other than for restricted private use), then a benefit in kind will arise. The benefit is subject to tax on the employee and Class 1A National Insurance contributions on the employer. 

For the period 6 April 2010 to 5 April 2015, the legislation provided for a van benefit charge of nil for zero-emission vans. The Finance Act 2015 introduced a tapered increase in the level of the van benefit charge for zero-emission vans through applying an appropriate percentage to the charge applying to conventionally fuelled vans, starting at 20% for the year 2015/16. 

The level of the appropriate percentage was currently due to increase to 40% in 2016/17; 60% in 2017/18; 80% in 2018/19 and 90% in 2019/20 until the charge applying to conventionally fuelled vans applies to zero-emission vans in 2020/21. 

Legislation will be introduced in the Finance Bill 2016 to retain the appropriate percentage of 20% for the tax years 2016–17 and 2017–18 and deferring further increases to the level of the appropriate percentage until later years.