Plug-in car, van & motorcycle grants

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:
  • Wheelchair-accessible vehicles.
  • Vans.
  • Motorcycles & mopeds.
  • Taxis.
  • Trucks.
  • 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

The Plug-in Car Grant (PICG) for cars was withdrawn on 14 June 2022.

Wheelchair access vehicles

Vehicles with wheelchair access may still benefit from the grant.  In order to be eligible, the vehicle must:

• Be converted from a passenger vehicle.
• Have a zero-emissions range of at least 70 miles.
• Cost less than £35,000.

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 35% of the purchase price, up to a maximum of £500.  

Eligible motorcycles must cost less than £10,000, including VAT and delivery fees.

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, including VAT and delivery fees

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

• The home charge grant of up to £350, including VAT of the cost of the charge point installation, is no longer available.

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 (VED) (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
Since 6 April 2015, a reduction in the Van Benefit Charge (VBC) has applied for zero-emission vans.

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.