The UK government has gradually reduced its electric vehicle purchase incentives over the past several years, but grants and subsidies for EVs still exist in 2026. Understanding what is available helps you maximise savings when switching to an electric vehicle.
Current EV Purchase Grants
The Plug-in Car Grant — which offered up to £5,000 off new EV purchases — was discontinued for most cars in June 2022. However, the Plug-in Taxi Grant continues, offering up to £7,500 off the purchase price of a new electric taxi. The Plug-in Van Grant also remains available, providing up to £5,000 off the purchase price of eligible electric vans.
Electric Vehicle Homecharge Scheme
The EV Homecharge Scheme provides up to 75% of the cost of installing a home charging point, capped at £350 including VAT. To qualify, you must own or lease an eligible EV and have off-street parking. The grant is administered through approved chargepoint installers. Applications must be made through the installer — you cannot claim the grant retrospectively.
VAT Relief on Home Charging
Electric vehicle charging at home benefits from a reduced VAT rate of 5% on electricity — compared to the standard 20% rate for most domestic energy. This VAT reduction applies when you use a dedicated EV tariff or a smart charger that tracks EV-specific consumption. Not all energy tariffs offer this rate, so check with your supplier whether an EV-specific tariff is available.
Benefit-in-Kind Relief for Company Cars
Company car drivers enjoy some of the most significant EV incentives available in 2026. The Benefit-in-Kind rate for electric company cars is just 2% of the vehicle's P11D value — compared to 37% for high-emission diesel company cars. For a £40,000 electric company car, the annual BiK tax at the 20% rate is just £800 per year, making EVs dramatically cheaper than equivalent petrol or diesel company cars.
Road Tax and EV Exemptions
Fully electric vehicles with zero CO2 emissions pay £0 Vehicle Excise Duty — now and in the future. This exemption applies automatically when you tax the vehicle. There is currently no scheduled end date for the zeroVED rate for EVs, though future changes are always possible. The exemption applies for as long as you own the vehicle, making EVs the most cost-effective choice for road tax over a typical ownership period of three to five years.
Local Authority EV Incentives
Some local authorities offer additional incentives for EV ownership beyond the national schemes. These can include free or reduced-cost parking in council car parks, access to bus lanes for EVs, reduced congestion charge zones for electric vehicles, and free resident parking permits for EVs. These vary by council and change over time — check with your local authority for current incentives available in your area.