UK EV fleet grants & incentives 2025 — what you need to know

Electrifying your fleet in 2025 can shave thousands of pounds off up-front costs — if you capture every grant and tax break. Yet many fleets miss out due to a patchwork of schemes and changing rules. This guide consolidates the UK incentives that matter most to fleet managers and finance directors running 20–200 vehicles (primarily outside London).

(Up to date as of September 2025, with a forward-looking view.)

Why grants and tax incentives matter

• Grants: direct capital discount at purchase (lower CAPEX, earlier ROI)
• Tax incentives: faster payback in your TCO (corporation tax relief, ultra-low BiK, no fuel benefit charge on electricity)
• Annual changes: do not rely on last year’s rules—several 2025 updates materially move the numbers

National vehicle purchase grants (2025)

Plug-in Van & Truck Grant (PIVG)

• Vans: up to 35% off, capped at £2,500 (small <2.5t GVW) or £5,000 (2.5–4.25t)
• Trucks: 20% off, capped at £16,000 (4.25–12t) or £25,000 (>12t)
• Eligibility: OZEV-approved BEVs/FCEVs
• Applied by dealer at point of sale
• Confirmed into 2026/27, but subject to annual caps — confirm allocation with the dealer early

Electric Car Grant (reintroduced July 2025)

• Applies to EVs ≤ £37,000 RRP with ≥100 miles WLTP range
• £3,750 (sustainability tier) or £1,500 (baseline)
• Applied by dealer
• Multi-year funding signalled to 2028/29

Grants for charging infrastructure

Workplace Charging Scheme (WCS)

• 75% of purchase and install costs, capped at £350 per socket
• Limit: 40 sockets per applicant
• Apply online → voucher → installer redeems

EV Infrastructure Grant for SMEs

• For SMEs ≤ 249 employees
• Up to £15,000 per site
• £350 per socket + £500 per EV-ready space
• Can be combined with WCS

Depot Charging Scheme (mid-2025)

• For fleets operating vans, trucks or coaches from depots
• 75% of eligible costs, capped at £1m per organisation
• Applications close 28 Nov 2025; installations by 31 Mar 2026
• Requirements: EVs on order, landlord permission, grid plan

Tax incentives and fiscal relief (2025/26)

Capital allowances

• 100% First-Year Allowance (FYA) for new zero-emission cars
• 100% FYA for charge-point equipment
• Available until 31 Mar 2026

Company car taxation (BiK)

• 3% in 2025/26, rising to 5% by 2027/28
• 9% by 2029/30
• Employer Class 1A NI = 15% from Apr 2025

Fuel benefit & electricity

• No Fuel Benefit Charge for electricity
• Paying for charging does not trigger BiK

Advisory Electricity Rate (AER)

• From 1 Sept 2025: 8p/mile (home) and 14p/mile (public)

Vehicle Excise Duty (VED)

• From Apr 2025: £10 first year, then £195
• Expensive Car Supplement > £40k applies

Local and regional incentives

• EVs exempt from Clean Air Zone charges
• Some councils offer parking/charging perks (varies)
• LEVI fund increases public charging density
• Scotland/Wales: targeted programmes (check current schemes)
• London: EVs exempt from ULEZ. Congestion Charge discount ends 25 Dec 2025

Deadlines and process

• Plug-in grants: dealer applies, subject to caps
• Electric Car Grant: live since July 2025, to 2028/29
• WCS & SME grants: rolling, apply before install
• Depot Charging Scheme: apply by 28 Nov 2025, complete by 31 Mar 2026

10-minute fleet manager checklist

1. Check OZEV eligibility and dealer grant application
2. Confirm car grant band (£3,750 or £1,500)
3. For multi-unit orders, confirm allocation with OZEV
4. Apply for WCS (up to 40 sockets)
5. If SME, add EV Infrastructure Grant (£15k/site)
6. For depots, scope project under Depot Scheme (apply by Nov 2025)
7. Use 100% FYA before Mar 2026
8. Apply BiK (3%) + NI (15%) savings vs ICE
9. Use AER 8p/14p from Sept 2025
10. Check CAZ, local perks, devolved schemes

Worked micro-example

• Large van £48k → £5k PIVG → £43k net
• 100% FYA deduction in year one
• Driver BiK: 3% of list; employer NI = 15% of that benefit
• Mileage reimbursed at 8p/14p
• Workplace: 20 sockets → £7k WCS support; add £15k enabling works if SME
• Depot: up to 75% funded (apply by Nov 2025)

Why a grants & tax audit pays

A focused audit typically uncovers five-figure savings for fleets of 50–200 vehicles by sequencing orders, combining grants, and optimising BiK/AER policy.

FAQs

What’s the EV car grant in 2025?

£3,750 or £1,500 dealer-applied discount on new EVs ≤ £37k, ≥100 miles WLTP

How much is the Plug-in Van Grant?

35% off, capped at £2,500 (small) or £5,000 (large). Trucks: 20% capped at £16k or £25k

What about charging grants?

WCS £350/socket (40 max). SME grant up to £15k/site. Depot scheme 75% up to £1m (apply by Nov 2025)

Any local perks?

Yes — EVs exempt from CAZs, some councils offer perks, and Scotland/Wales run targeted schemes

⚡️ Next step: If you want clarity on what these grants mean for your fleet, our Audit Express session is a rapid way to stress-test the numbers. In 90 minutes, you’ll see where the savings are, what deadlines apply, and how to sequence orders to capture them.

👉 Book Audit Express