This is a freeview 'At a glance' guide to plug-in car, van & motorcycle grants.

Plug-in vehicles and charging points can be eligible for government grant funding.

At a glance

  • Grants are available only to new UK-registered low-emissions vehicles.
    • The discount will be reflected in the vehicle's retail price if available.
  • Vehicles must meet specific performance and safety criteria.
  • Grants are available for:
    • Cars.
    • Vans.
    • Motorcycles & mopeds.
    • Taxis.
    • Trucks.
    • Home and work recharging points.
  • Enhanced capital allowances are not available for vans from 1 April 2015 to 31 March 2018 (companies) and 6 April 2015 to 5 April 2018 (unincorporated businesses) if a plug-in grant or other forms of state aid have been received in respect of the vehicle.
  • Enhanced capital allowances are not available for low emission cars (CO2 >0g/km) from 1 April 2021 (companies) or 5 April 2021 (unincorporated businesses).
    • Cars with CO2 emissions of 0g/km are still eligible for the FYA (100%) from 1/5 April 2021.

Cars

There is now a single category for cars, which must have CO2 emissions of less than 50g/km and a zero-emission range of at least 70 miles. The discount is for 35% of the purchase price, up to a maximum of £1,500.

  • Cars were previously placed into three categories. 

Eligible cars must cost less than £35,000.

  • This is the recommended retail price including VAT and delivery fees.

Vans

Vans must have CO2 emissions of less than 50g/km and a zero-emission range of at least 60 miles. The discount is for 35% of the purchase price, up to a maximum of £2,500 for small vans and £5,000 for large vans. Whether small or large is dependent on weight.

Motorcycles 

Motorcycles must have no CO2 emissions and travel at least 31 miles between charges. The discount is for 20% of the purchase price, up to a maximum of £500.  

Eligible motorcycles must cost less than £10,000.

Mopeds

Mopeds must have no CO2 emissions and travel at least 19 miles between charges. The discount is for 35% of the purchase price, up to a maximum of £150.

Eligible mopeds must cost less than £10,000.

Taxis

Taxis must be purpose-built taxis with CO2 emissions of less than 50g/km and a zero-emission range of at least 70 miles. The discount is for 20% of the purchase price, up to a maximum of £7,500.

Small trucks

Small trucks must have CO2 emissions of at least 50% less than the equivalent conventional Euro VI vehicle that can carry the same capacity and have a zero-emission range of at least 60 miles. The discount is for 20% of the purchase price, up to a maximum of £16,000 for the first 250 trucks. The £16,000 maximum is available for the first 10 trucks per customer. Over 250 trucks and the grant is reduced to a maximum of £5,000.

Large trucks

Small trucks must have CO2 emissions of at least 50% less than the equivalent conventional Euro VI vehicle that can carry the same capacity and have a zero-emission range of at least 60 miles. The discount is for 20% of the purchase price, up to a maximum of £25,000 for the first 100 trucks. The £25,000 maximum is available for the first five trucks per customer. Over 100 trucks and the grant is reduced to a maximum of £16,000 for 250 grants, before reducing to £5,000.

Home charge grants

  • Up to £350, including VAT of the cost of the charge point installation.

Workplace charging scheme vouchers

  • Sockets per company increased from 20 to 40.
  • The contribution is limited to 75% of purchase and installation costs, up to a maximum of £350, including VAT with a cap per socket applied on or after 1 April 2020.
  • Voucher valid for 180 days.

Other allowances

Low emission vehicles are currently:

  • Exempt from Vehicle Excise Duty (VED0 (road tax).
  • Vans are subject to Discounted benefit rates where used by employees.

Useful guides on this topic

Van Benefit Charge (VBC) Zero-emission vans
The van benefit charge exemption for zero-emission vans is being phased out between April 2015 and April 2022.

Cars & Vans: VAT
What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements? 

External links

HMRC website www.gov.uk provides a list of eligible vehicles.

Detailed guidance, including performance and safety criteria, is also available on the HMRC website for cars and vans.


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