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

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