Incentives and Legislation
The incentives and legislations section is updated for 2025, published on 18th April 2025, representing the situation as of that date. Major changes of incentives and polices are updated on a rolling basis from that date onwards.
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, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice.
The incentives and legislations section is updated for 2025, published on 18th April 2025, representing the situation as of that date. Major changes of incentives and polices are updated on a rolling basis from that date onwards.
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, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice.
- Purchase subsidies
Wheelchair Accessible Vehicles (WAVs): A 35% discount (up to £2,500) is available for converting an M1 vehicle to a wheelchair-accessible format, provided it:
- Emits zero CO₂
- Can travel at least 112 km (70 miles) without emissions
- Costs less than £35,000 (excluding conversion costs)
Consumer Loan Support: The government is in discussions to subsidize EV purchases by guaranteeing consumer loans, aiming to offer low-interest or interest-free loans to make EVs more affordable.
- Registration tax benefits
No specific registration tax benefits are currently available for BEVs.
- Ownership tax benefits
Vehicle Excise Duty (VED):
- From April 1, 2025, new zero-emission cars are subject to a first-year VED of £10, followed by a standard annual rate of £195.
- EVs with a list price over £40,000 are now subject to the Expensive Car Supplement of £425 annually for five years.
- Company tax benefits
Benefit-in-Kind (BiK) Tax:
- A 2% BiK rate applies to electric company cars until April 2028, after which it will progressively increase.
First-Year Capital Allowances:
- Businesses can claim 100% first-year capital allowances on new zero-emission cars until March 31, 2026.
- AF infrastructure incentives
'Electric Vehicle Homecharge Scheme (EVHS): Provides grants for homeowners in apartments and renters to install home chargepoints.
Workplace Charging Scheme (WCS): Covers up to 75% (maximum £350 per socket) of the cost to purchase and install workplace EV chargepoints, up to 40 sockets.
Infrastructure Expansion: Significant investments have been made to expand the UK's charging infrastructure, with over £500 million allocated to projects across various regions.
- Announced policy changes (effective later in 2024 and after)
Zero Emission Vehicle (ZEV) Mandate:
- The government has adjusted the ZEV mandate, allowing more flexibility for manufacturers and reducing fines for non-compliance by 20%.
Public Investment:
- A commitment of £2.3 billion has been made towards tax breaks for EV buyers and improving charging infrastructure.
- Interesting links