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European Alternative Fuels Observatory

United Kingdom

Incentives and Legislation

The incentives and legislations section are being updated now. An up-to-date version for all countries are expected until 29th March 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email and let us know.

Registration tax benefits

From April 2017, there is a tax exemption for zero emission vehicles valued GBP 40 000 or less. Low emission vehicles pay reduced tax rates.

Ownership tax benefits

From April 2017, zero emission vehicles valued GBP 40 000 or less are exempt from the annual circulation tax.

Company tax benefits

As set out in July 2019, the UK government will reduce most company car tax (CCT)  rates by 2 % in 2020-21 for cars first registered from 6 April 2020 to reflect the introduction of WLTP. Rates will return to planned levels over the following 2 years, increasing by 1 % in 2021-22 and 1 % in 2022-23. Rates will then be frozen until 2024-25. Van benefit charge nil-rating for zero emission vans:
From April 2021, the government will apply a nil rate of tax to zero-emission vans within van benefit charge.

Tax benefits for businesses installing charging infrastructure through a 100 % first year allowance (FYA) for expenditure incurred on electric vehicle charge point equipment.

 

Purchase subsidies

The UK government has ended its plug-in car grant program effective 14th June. 

AF infrastructure incentives

The United Kingdom (UK) has an Electric Vehicle Home Charge Scheme in place in which citizens who bought an EV are able to get a grant for installing a charging point at home. Customers who are the registered keeper, lessee or have primary use of an eligible electric vehicle may receive up to 75 % (capped at GBP 500, inc. VAT) off the total capital costs of one charge point and associated installation costs. Eligibility for the grant includes company cars and leased cars for at least 6 months on or after 1 October 2016. A customer’s designated private off-street parking is eligible and must be associated to the property of the customer. Similar for workplace charging the UK has a workplace charge point grant which is a voucher-based scheme designed to provide eligible applicants with support towards the upfront costs of the purchase and installation of EV charge points. The contribution is limited to the 75 % of purchase and installation costs, up to a maximum of GBP 500 for each socket, up to a maximum of 20 across all sites for each applicant.

Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.

Incentives and Legislation

The incentives and legislations section are being updated now. An up-to-date version for all countries are expected until 29th March 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email and let us know.