Electric Car Rollout Incentives: Tax, Grants & More
Electric Car Rollout Incentives: Tax, Grants & More
The Spring Budget is out. EVs are a go. The electric car market is booming. The future? Bright, green and electric.
Soon, petrol and diesel cars will fade out of the UK, leaving one last cloud of toxic smoke in their wake.
But what’s at the backbone of EV adoption in the UK? The perks of electric vehicles (EVs), of course. However, electric car incentives help, too.
Here, we discuss the A-Z of electric car rollout incentives in the UK 2025. Whether it’s tax breaks or charging infrastructure, our guide to government incentives for electric cars has got you covered.
1. Local Electric Vehicle Infrastructure (LEVI) Funding
One of the biggest UK EV incentives is the expansion of EV infrastructure—and the LEVI fund is helping to make it happen.
Local councils can unlock thousands to roll out more on-street chargers. Think ChargeArm, Kerbo Charge, and public charging stations—solutions designed to fit into everyday life. The goal? To make EV ownership seamless for those without dedicated off-street parking.
A staggering £381 million has been pumped into the Local Electric Vehicle Infrastructure (LEVI) fund. While funding levels vary across the UK, the numbers speak for themselves: £22,000 for the North East, and a massive £53.5 million fueling the North West.
2. Plug-in Van and Truck Grant
Sadly, the plug-in grant for electric cars ended in April 2022. Up to £5,000 off the cost of purchasing a new EV was available and played an instrumental role in maturing the EV market.
However, all is not lost.
The UK government recently extended another electric vehicle grant—the Plug-in Van and Truck Grant.
What is this EV grant? Since 2012, the plug-in van and truck grant has helped offset the cost of battery-electric vehicles, making the transition to sustainable transportation more accessible. Thousands of pounds are available for the taking.
Below is the maximum available amount to take off the purchase price with the Plug-in Van and Truck grant:
- £2,500 for small vans (up to 2.5 tonnes)
- £5,000 for larger vans (up to 4.25 tonnes)
- £16,000 for small rucks
- £25,000 for large trucks
Eligible vehicles include popular models from leading car manufacturers, such as the Volkswagen ID. Buzz Cargo Commerce, Citroën e-Berlingo and Maxus eDeliver 3.
3. Company car tax (Benefit in Kind BIK)
Do you own a company car? Do you use it for personal use? Unfortunately, the government will levy a tax on your company car. Specifically, company car tax.
But there is a silver lining.
Electric cars are in the lowest tax bracket for BIK. In fact, the company car tax rate for electric cars is now just 2% – and will continue to be until April 2028.
Compare the 2% rate for EVs to petrol and diesel rates, which can stretch to 20% for the basic rate and 31-37% for the higher rate.
4. Ultra-Low Emission Zone (ULEZ) discount
Electrifying change, the Ultra-Low Emission Zone (ULEZ) carves out a strict, pollution-fighting section of London. High-emission vehicles face a daily toll when crossing the set-out boundary. If that’s your vehicle, you’ll pay £12.50 per day.
But here’s the good news—EVs, as zero-emission vehicles (ZEVs), are completely exempt from the ULEZ fee.
Picture it: You’re a daily city commuter, navigating London’s bustling streets, dodging traffic, and already spending a fortune on fuel. Save £12.50 —day after day, month after month. All by investing in an EV. Or maybe you run a fleet of taxis, whisking passengers far and wide across the city. No additional fees mean you pocket more revenue.
Please note that discounts are not available for plug-in hybrids.
5. Congestion Charge exemption
On the same wavelength as above, electric cars have hugely benefited from Congestion Charge exemption since 2003. Save £15 per day when you drive through the heart of London in your EV. Couple that with the ULEZ Zone exemption and London EV drivers snag significant savings.
But here’s the catch—this incentive vanishes in December 2025. Like a disappearing charging cable when you need it most, the funding won’t stick around forever. Once the deadline hits, the plug gets pulled.
So, if you’re thinking of visiting London in your EV, act fast—before it’s gone for good.
6. Lower Vehicle Excise Duty/Road Tax
For five years, electric cars have been fully exempt from the road tax. This has been one of the most lucrative UK car industry electric vehicle incentives.
But, unfortunately, nothing ever lasts forever. With millions of electric cars on UK roads – 1,480,000 to be exact – the exemption for the ongoing future isn’t sustainable.
Starting 1 April 2025, electric cars will have to pay road tax.
That said, while EVs now have to pay road tax, the amount is still significantly less than petrol and diesel cars. In fact, electric cars pay the lowest first-year rate of VED at a tiny £10 a year.
Of course, after the first year, the rate will go up. But the incentive is still there for first-time EV buyers.
7. EV Charger Installation Grants
On top of grants for certain electric vehicles themselves, funding for expanding the web of charging stations across the UK is ready for the taking.
Currently, a smorgasbord of grants is available to help boost EV charging infrastructure in a variety of settings and locations. Schools, businesses, public sector organisations, renters and more—EV drivers won’t be limited.
In most instances, 75% of the cost to supply and install is available, whether for commercial or residential properties. Although, unfortunately, the EVHS aimed at single unit homeowners is no longer available. Still, over 340,000 home EV chargers were installed with this funding.
Electric Car Rollout Incentives Summary:
Incentives for electric cars in the UK come in different shapes and sizes. From discounts off EV list prices to funding for EV charging infrastructure, the pot of electric car incentives in the UK are extremely generous.
In short, though, here are the following EV incentives in 2025:
- LEVI Funding
- Plug-in and Truck Grant
- Company Car Tax discounts
- Ultra Low Emission Zone exemption
- Congestion Charge exemption
- Vehicle Excise Duty discount
- EV charger installation grants.
Switching to electric? Don’t forget your EV charger.
If you’ve been on sold on an EV with the current electric car rollout incentives, the don’t forget your home EV charger – an essential item for easier, cheaper charging.
Ready to invest? For the best in class home EV charger installations, trust We Power Your Car. With DBS-checked, experienced and accredited installers across the UK, we can install nationwide – all with first class customer service.
If you want a home EV charger installation, click below to get your free quote, or contact us for more information or any queries you may have.
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