The Complete Guide to EV Grants and Incentives - Select Car Leasing
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The Complete Guide to EV Grants and Incentives

Thinking of buying or leasing an electric car? There’s never been a wider choice of cars, and there are also plenty of grants, tax breaks, and other incentives to make the switch to electric more affordable. 

But knowing which ones you’re eligible for (and how to actually get them) is far from straightforward. That’s what this guide’s for – whether you’re a private motorist, a business owner, a taxi driver or just curious about electric vehicles (EVs), here’s a detailed breakdown of what’s available.

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Plug-In Vehicle Grants

There are a number of grants from the UK government available for plug-in vehicles, which can reduce the upfront costs of buying certain EVs. The grants are applied by the dealership at the point of sale, so you don’t need to apply yourself.

All of these grants are available until at least 31 March 2026, subject to funding limits.

The current plug-in vehicle grants are:


Electric vans:

Electric vans:

Up to £2500 off small vans and £5000 off large vans weighing more than 2500kg. Applies to new vans emitting less than 50g/km of CO2 that can drive at least 60 miles with zero emissions. Mostly applies to full-electric vans, but plug-in hybrid vans qualify if they meet the above criteria.

Electric taxis:

Electric taxis:

Up to £4000 off new purpose-built taxis. Must emit less than 50g/km of CO2 and drive at least 70 miles in zero-emission mode. At the time of writing, the LEVC TX is the only eligible vehicle

Electric motorbikes:

Electric motorbikes:

Up to £500 off eligible electric motorbikes and scooters with the plug-in motorcycle grant (PiMG). Bikes must have a recommended retail price (RRP) below £10,000. Eligible bikes are L3-category bikes that can go at least 31mph and have a battery range of at least 31 miles. That means no mopeds.

Wheelchair-accessible EVs:

Wheelchair-accessible EVs:

Up to £2500 off approved models, which are the Citroen e-Berlingo and e-Spacetourer Business, the Peugeot e-Rifter and the Vauxhall Vivaro e-Life Combi. Must be adapted for wheelchair access and cost less than £50,000 RRP (not including the cost of conversion).

Home Charger Grants

If you’re a flat owner or rent your home, and you have off-street parking, you can get financial help towards the cost of installing a home EV charger. This is through the EV Chargepoint Grant, and it’ll cover 75% of the cost up to £350.

Own a house rather than a flat? Unfortunately you’re not eligible for this grant anymore, although your installer might offer a discount if you buy both the charger and the installation as a package deal.

Workplace And Landlord Charger Grants

Businesses, landlords and even schools can claim support for installing EV chargers.

  • The Workplace Charging Scheme offers 75% off installation costs, up to £350 per socket, for up to 40 sockets.
  • Landlord grants can also cover up to £350 per socket and up to £30,000 per site for installing infrastructure in residential or commercial properties.
  • Small and medium-sized businesses (SMEs) can get a grant of up to £15,000 per site to install chargers for staff or fleet use.
  • A school-specific scheme allows up to £2500 per socket. It’s open to state-funded education institutions.


Tax Breaks For Going Electric

Opting for an EV can open you up to several tax advantages, especially if you’re a company car driver or run a business.

Company car tax (Benefit-in-Kind)

  • Electric cars are taxed at just 2%, compared to 25%-plus for petrol and diesel cars.
  • However, this will rise slightly each year, reaching 5% by 2027. Still, those are big savings.

Road tax (Vehicle Excise Duty)

  • While EVs are no longer exempt from VED, you can save a lot when you buy new – they cost just £10 for the first year.

Capital allowances

  • Businesses can write off 100% of a new EV or charging equipment cost against profits in the first year, until March 2026.

Scotland

If you’re lucky enough to live north of the border, you can take advantage of some of the most generous EV support in the UK. Scotland-specific help includes:

An interest-free loan of up to £23,000 to buy a second-hand electric car or van, if your household earns less than £50,000 a year or you live in a rural and remote area of the country. A previous loan for new EVs is no longer available, however…

…an electric van loan for small businesses will be opening soon with up to £40,000 available for a new van, or up to £30,000 for a used one. Those interested can register on the Energy Savings Trust website.


City Perks: ULEZ, Congestion Charge and more

Larger UK cities are increasingly incentivising EV ownership through congestion charges or Clean Air Zones, also known as CAZ.

  • ULEZ: Full-electric cars are exempt from the £12.50-a-day charge for entering the capital’s Ultra Low Emission Zone, which covers just about everywhere inside the M25.
  • Congestion Charge: EVs get a 100% discount on the £15 daily congestion charge – but only until 25 December 2025.


  • Bristol has a £42-million financial support package for residents that need to change or upgrade their vehicles within the city’s CAZ, or to help switch to public transport.
  • Cars are eligible for up to £2000 in loans, grants or a combination of both, with a maximum grant of up to £1500. Priority is given to individuals and Blue Badge holders earning less than £30,000, sole traders, charities and small businesses with premises within the CAZ.
  • There are also free electric bike loans and free bus tickets available to encourage people out of their cars.


  • Private cars are currently exempt from Bradford’s CAZ.
  • The city offered grants of up to £4500 to eligible residents and businesses to upgrade their small vans and minibuses, but the schemes are closed to new applications.


  • Birmingham has a Vehicle Scrappage Scheme open to those that live and work within the city’s CAZ boundary. There are grant packages worth up to £4000 for those that scrap a vehicle that doesn’t meet the emissions standards, with either a scrappage grant of £2000, a £1600 grant and £1500 of public transport credit, or £1000 for scrappage and two £1500 travel credits to be shared within a family.
  • Applications are open to residents within the CAZ and workers that travel into the zone for work and earn less than £32,000 a year (but work at least 18 hours a week).


  • Bath’s CAZ affects primarily commercial vehicles, and the city’s regional authority offered financial assistance to adapt or replace more than 900 non-compliant vehicles. However, the scheme has now concluded.

  • Focusing on commercial vehicles, Newcastle and Gateshead has government funding for grants to upgrade or replace taxis, buses, coaches and goods vehicles, with up to £16,000 available depending on vehicle type.
  • Eligible vehicles must be registered to a residential or business address in Newcastle, Gateshead or North Tyneside, and must have been owned by the applicant before 18 July, 2022.


  • Portsmouth’s CAZ is another that affects mainly commercial vehicles, and its Clean Air Fund financial support scheme is now closed to new applications.

  • Sheffield’s CAZ financial assistance scheme, which was another aimed at commercial vehicles, closed at the end of May.

Other Benefits To Keep In Mind

As well as the financial support available to help make the switch to electric vehicles, there are other benefits to ditching diesel and petrol. Charging an electric car at home is far cheaper than filling a fuel tank, especially if you use off-peak electricity. There are also fewer moving parts in an electric motor, so maintenance and servicing costs are often lower.

Some local councils still offer free parking for EVs, and a few areas also let EVs use bus lanes (although we recommend double checking before sailing down illicit roads).

These perks are changing rapidly, with schemes being phased out and new ones being introduced. It’s well worth keeping an eye on deadlines and keeping in touch with your car dealer to see what you can claim. With the right support, going electric can be a very cost-effective move.

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