Grab your electric van grant while you can
One benefit that’s managed to avoid the chop relates to electric vehicles. What’s available and how might it help if you’re in the market for a new commercial vehicle?
The government has announced that £120m is available to drivers, cabbies and businesses who want to make the switch to electric vehicles. The money comes through the “plug-in van grant”, which has been extended for another twelve months to April 2026. Under the 2024/2025 electric van grant rules, the maximum saving for 3.5-tonne electric vans is £5,000, while the maximum reduction for smaller vans up to 2.5-tonnes is £2,500. This will now be extended to 2025/26. Heavier electric vans such as those with 4.25-tonne ratings and N categorisation continue to qualify for the small truck grant, which offers an incentive of up to £16,000, capped at 20% of the purchase price.
To qualify for the plug-in grant the electrified van must now meet the following standards: 60 miles or more of zero emissions driving range; less than 50g/km CO2 emissions.The plug-in taxi grant, due to run out in April, has not been extended. However, grants of up to £4,000 for the purchase of zero emission cabs are being made available. This is less than the £6,000 available until March 31, 2025. A grant of £500 is available for those purchasing new electric motorbikes.
Related News
-
Beating the capital allowances rate reduction
The main rate of relief for capital allowances is reducing from 18% to 14% from April 2026. Is this something that’s likely to affect you and if so, what can you do to make the most of the current rate?
-
Sharing salary with your partner
You’re a director with a substantial salary and your partner isn’t working right now. If you could split your salary with your partner the tax saving would make a real difference. How can you legitimately share your salary to improve the overall tax position?
-
Are you including too much income in your calculations?
Your business is partly exempt and you claim input tax on your mixed costs and general overheads by using the standard method based on turnover splits. What income should you exclude from the calculations?