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Electric Car Grant and EV tax in the UK
The Electric Car Grant takes up to £3,750 off eligible new electric cars priced at or below £37,000. The seller applies it as a discount, so you do not apply yourself.
Bands
- Band 1: up to £3,750, for cars that score best against the government's sustainability criteria.
- Band 2: up to £1,500.
Eligibility is by model and variant, and the list changes as manufacturers are approved. Only electric cars are on it, not hybrids or plug-in hybrids. The official list is on GOV.UK. See the cars in our list that appeared on published lists, then confirm the exact variant and price with the seller.
Road tax (VED)
Zero-emission cars have paid only £10 in their first year. After that the standard rate applies, and the rules have changed recently, so check GOV.UK for your car's registration date and list price.
Company cars and salary sacrifice
Company car tax on pure EVs is a very low percentage of list price: 4% for 2026/27, scheduled to rise gradually. Plug-in hybrids are taxed on emissions and electric range. Salary sacrifice pays for the car from pre-tax salary, so savings depend on your tax band and the contract, including what happens if you leave your employer.
Future changes
The government has announced plans for a per-mile charge on electric vehicles. Details and dates can change, so check GOV.UK before long-term decisions.
Motability
If you or someone you care for receives an eligible disability allowance, ask the Motability Scheme which electric and hybrid cars are available.
Frequently asked questions
Is there a government grant for buying a new electric car?
Yes. The Electric Car Grant takes up to £3,750 off eligible new electric cars priced at or below £37,000, applied by the seller as a discount, so you do not apply yourself. Band 1 cars can get £3,750 and Band 2 cars £1,500, depending on sustainability criteria. The eligible list changes, so check GOV.UK and confirm with the dealer before you order.
Do plug-in hybrids or hybrids qualify for the Electric Car Grant?
The official list is of electric cars, not hybrids or plug-in hybrids. Grant eligibility also depends on the specific model and its price, so always check the current GOV.UK list.
How is a company car EV taxed?
Company car tax on electric cars is set at a very low percentage of the car's list price. It is 4 percent for the 2026/27 tax year, and rates are scheduled to rise gradually. Plug-in hybrids are taxed based on emissions and electric range. Check HMRC for current rates.
Will there be a pay-per-mile charge for electric cars?
The government has announced plans to introduce a per-mile charge for electric vehicles in future. The design and start date can change, so check GOV.UK for the latest before you make long-term decisions.
Related
- Electric cars on the Electric Car Grant list
- Cheapest electric cars in the UK
- Buying a new electric car: your rights
- Pure EV vs hybrid vs plug-in hybrid
Keep going
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Figures compiled September 2026 from published UK sources and are approximate. Page reviewed 2026-09-20. General information, not financial, legal or technical advice.