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.
  • Vehicles must emit less than 75g CO2/km.
  • Vehicles must meet specific performance and safety criteria.
  • Grants are available for:
    • Cars.
    • Vans.
    • Motorcycles & Mopeds.
    • Taxis.
    • Home and work recharging points.
  • Grants in some form are expected to be available until 2020.
  • 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 will not be available for electric cars or low emission cars from 1 April 2021 (companies) or 5 April 2021 (unincorporated businesses).

Categories

There are three categories for cars and one for vans:

  • Category 1: CO2 emissions of less than 50g/km and a zero-emission range of at least 70 miles.
  • Category 2: CO2 emissions of less than 50g/km and a zero-emission range between 10 and 69 miles.  
  • Category 3: CO2 emissions of 50 to 75g/km and a zero-emission range of at least 20 miles.  
  • Van: CO2 emissions of less than 75g/km and a zero-emission range of at least 10 miles.

Vehicle grants available are as follows:

  • Category 1: 35% of the cost, to a maximum grant of £3,000.
  • Category 2: no longer available.
  • Category 3: no longer available.
  • Van: 20% of the cost to a maximum of £8,000.
  • Motorcycle: 20% of the cost to a maximum grant of £1,500.

Home charge grants

  • Up to £350, including VAT off 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 from 120 to 180 days.
  • Vouchers applied for after 24 July 2018 £500.
  • Vouchers applied for before 24 July 2018 £300.

Other allowances

Low emission vehicles are currently:

Large vans and trucks

Large vans and trucks must have CO2 emissions of at least 50% less than the equivalent conventional Euro VI vehicle that can carry the same capacity. They can travel at least 16km (10 miles) without any emissions at all. 

For the first 200 orders, the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £20,000. The grant will then pay for 20% of the purchase price for these vehicles, up to a maximum of £8,000.

Links

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.

External links

HMRC website www.gov.uk provides a list of car and vans.

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

Latest Updates

2019 Revised and updated.

15/08/18 Details of Motorcycle & Moped grants and Home and Workplace charging vouchers added.

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