The government wants to achieve net zero emissions by 2050. It also plans to bring forward a ban on the sale of new petrol and diesel vehicles to 2035 and support the uptake of battery electric vehicles. The Plug-in Grant is a crucial component in the affordability of BEVs. The Plug-in Grant directly impacts the lease cost of a vehicle for both an individual or a company.
You can get a discount on the price of brand new low-emission vehicles through a grant from the government.
You do not need to do anything if you want to buy a vehicle the value of the grant will be included in the vehicle’s price.
The amount of the grant depends on which category the vehicle is in. The six categories are:
- Cars - Please see the updated information below
- Motorcycles - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £1,500
- Mopeds - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £1,500
- Vans - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £8,000
- Taxis - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £7,500
- Large vans and trucks - for the first 200 orders the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £20,000. The number of these higher grants that each customer can claim is a maximum of 10. After the first 200 the grant will then pay for 20% of the purchase price for these vehicles, up to a maximum of £8,000
- The Plug-in Car Grant rate will reduce from £3,500 to £3000.
- Premium cars, costing £50,000 or more, will no longer be eligible to receive the Plug-in Car Grant.
There have been a number of queries around the £50,000 price and OLEV clarified the below:
For private, business, fleet or demonstration models this means the actual price paid by the customer, including any discount, not the recommended retail price. This definition of purchase price includes:
- Number plates,
- Vehicle excise duty
- VAT (as applicable)
- Any optional extras
- Delivery charges
- First registration fee.
Any discount offered on the vehicle to the customer by either the dealer or the company must be applied to the price before the application of the plug-in vehicle grant. For internal manufacturer sales, where a vehicle is retained by the company (e.g. loaned to companies or organisations for trial purposes or for own use), purchase price refers to the Recommended Retail Price (RRP) of the vehicle, including and excluding the items referred to above.
In this case, where the actual purchase price of the vehicle is lowered for internal transaction purposes the grant should be applied on the RRP of the vehicle. For all these types of sales OLEV will require notification of when an order has been put into the system, in the form of an email with a list of the vehicles, and will need sight of an example invoice before the first transaction is made.
NB: Delivery Fee, First Registration and Optional Extras are not included in the calculation of purchase price.
The above can be found in their guidance (https://www.gov.uk/government/publications/plug-in-vehicle-grant-portal-guidance page 7)
We have also had questions about which vehicles the older criteria would have applied to:
To receive the old Plug-in Car Grant level of £3,500 and no cost cap eligibility criteria the order would need to have been added to the Plug-in Grant portal before 23:59 on 11 March.
The BVRLA recommends conversations with your suppliers to understand if your orders were placed on the portal in time.