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The UK Government’s Office for Low Emission Vehicles (OLEV) has been set up to strengthen the market for ultra low-emission vehicles in the UK. To achieve this, OLEV has a budget of £500 million to be spent up to 2020 support the market development of ultra- low emission vehicles. Grants are being offered to reduce the upfront cost of battery electric and plug-hybrid vans and support the installation of electric vehicle charging points.

A number of financial incentives have additionally been introduced at national and local level to lower the running cost of plug-in hybrid vans.

A list of the current incentives for plug-in hybrid electric vans:

  • Plug-in van grant- up to £8000 or 20% of list price.
  • Lower road tax rate.
  • 100% capital allowance.
  • Lower company van tax until April 2015.
  • Exempt from Van Benefit Charge until 2015, with tapered support extended to 2020.
  • Free/ Discounted parking offered by some local authorities.
  • 100% discount for London Congestion Charge.
  • Grant of up to £700 towards the installation electric vehicle infrastructure. The grant can only be accessed by householders who own or have regular access to an eligible plug-in vehicle.

Plug-in van eligibility criteria

To receive 20% or up to £8,000 off the list price, a van must meet the criteria as set out in the Plug-in Van eligibility Guidance document. To qualify, a vehicle must:

  • Emit less than 75 grams of carbon dioxide (CO₂) per kilometre driven.
  • Be able to travel a minimum of 60 miles between charges if a battery electric vehicle (BEV).
  • Have a minimum electric range of 10 miles if a plug-in hybrid electric vehicle (PHEV).
  • Be able to reach a speed of 50 miles per hour or more.

For more information see the Plug-in Van Guidance on the Department for Transport’s website.

To see which BEV vehicles are eligible for the grant, see our BEV Market page.

Further Information:

A member view...

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Eman Martin-Vignerte, Director, Bosch UK