How the UK Government helps EV owners
EV driving is on the rise in the UK. And the Government strives to facilitate this shift by offering real help to those car owners who decide to go green. In this post, we present the most important grants and financial benefits EV owners can enjoy.
Electric vehicle grants
The grant comes in the form of a discount on the price. It is available only for brand-new vehicles, which makes and models are included in the approved list. These vehicles must meet certain requirements regarding their CO2 emissions and range. The amount of the grant varies from £1,500 to £8,000. For more details see the following table.
Grant details
| Category | Max CO2 emissions, g/km | Min range, km (miles) | Price discount, % | Maximum grant amount, £ |
|---|---|---|---|---|
| Cars | 50 | 112 (70) | 35 | 3,000 |
| Motorcycles | 0 | 50 (31) | 20 | 1,500 |
| Mopeds | 0 | 30 (19) | 20 | 1,500 |
| Vans | 75 | 16 (10) | 20 | 8,000 |
| Taxis | 50 | 112 (70) | 20 | 7,500 |
| Large vans, trucks | no more that 50% of the Euro VI vehicle | 16 (70) | 20 | 8,000 |
Source: Low-emission vehicles eligible for a plug-in grant
However, cars have an extra requirement related to the purchasing price limitation. To be specific, the maximal purchasing price here must be £50,000. In other words, the grant does not cover premium electric cars, but only a medium market segment.
Charging station grants
As an EV Charging company, we are happy to mention a grant that facilitates charging infrastructure development (check out our documentation to get more information about EV chargers).
The grant comes in the form of funding charging station purchase and installation. It splits onto two schemes:
- Homecharge Scheme;
- Workplace Charging Scheme.
The UK government provides OLEV grants for private owners of eligible EVs, regarding the list of approved EVs. The grant covers up to 75% of the price for purchasing and installing an EV charger. However, the maximum grant cap here is £350. In a single residence, EV owners can claim for one chargepoint if they have just one electric vehicle or two chargepoints they have two or more electric vehicles.
Besides, the UK government provides OLEV grants for businesses and organizations engaged in charity or public sector. The grant here also covers up to 75% of the price for purchasing and installing a station with a cap of £350. According to the Workplace Charging Scheme, a company can apply for a voucher for up to 40 sockets.
Financial benefits and incentives
Also, the government offers many other financial benefits and incentives for EV owners, private or business:
Financial benefits and incentives
| Benefit category | Private EV owners | Business EV owners |
|---|---|---|
| Parking charge | Zero or reduced (in some boroughs) | Zero or reduced (in some boroughs) |
| Congestion charge | Zero | Zero |
| Fuel Duty | Zero for ultra-low emission vehicles | Zero for ultra- low emission vehicles |
| Vehicle Excise Duty (Road Tax) |
Zero for zero-emission EV valued less than £40k
Lower rates for hybrids Additionally: £325 per year (instead of £475) for the first five years for EV valued more than £40k Zero for zero-emission EV valued less than £40k |
Zero for zero-emission EV valued less than £40k
Lower rates for hybrids Additionally: £325 per year (instead of £475) for the first five years for EV valued more than £40k |
| Company car tax (Income tax and National Insurance on Benefit in Kind) | Only 2% for ultra-low emission vehicles in 2020/21 | |
| Car fuel benefit charge | Zero for ultra-low emission vehicles | |
| Capital Allowances | Up to 100% in the year of purchase |
Source: GOV.UK. 2020. Ultra Low Emission Vehicles: Tax Benefits, Drive a vehicle in the London low emission zone (LEZ), 2020
To sum up, the UK Government largely contributes to the electric car spread. It avails grants for purchasing electric vehicles and charging stations and provides essential tax and charge benefits. This way the government helps to overcome some drawbacks electric vehicles may have and enhance their advantages.