Zero emission vehicles and alternative fuels

Electric vehicle technology is evolving rapidly, however purchase costs for many electric vehicles are still more expensive than their petrol and diesel equivalents. While the ongoing running costs are highly attractive to businesses, the initial investment costs of electric vehicles can be significant. Your business may be eligible for grants and other support to make electric vehicles an easier choice.

Grant for electric vans and trucks

Some new zero emission vehicles (ZEVs) are eligible for a government grant. This means you can buy these vehicles more cheaply.

You do not apply for the grant. The seller includes it as a discount in the purchase price.

Only vehicles that have been approved by the government are eligible. The discount you can get depends on the type of vehicle.

Find out more about the grants, specific vehicle types and eligibility information.

Tax incentives for electric vehicles

Owning or operating an electric vehicle can attract various tax benefits, including exemptions from:

• fuel duty
• vehicle excise duty
• company car tax
• van benefit charge
• fuel benefit charge

Tax incentives for electric vehicles can save drivers over £2,000 a year.

You can claim capital allowances for a business electric car or van - see capital allowances.