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EV Laws and Regulations

The Road to Zero

In 2018, the UK Government announced their Road to Zero Strategy, a long-term plan to tackle rising CO2 levels in the UK by moving towards zero-emission road transport.

Transport is the UK’s biggest source of carbon emissions, with petrol and diesel vehicles contributing to this substantially. Addressing this, the government’s ambition is for 80% of all new car sales and 70% of van sales to be ultra-low emission by 2030, increasing to 100% by the end of 2035. By 2035, the goal is for the sale of new petrol and diesel vehicles to end. Some of the key plans for achieving these goals are outlined below.

Grants and preferential tax rates

To increase the uptake of low-emission vehicles, the government has committed to the following:

  • Grants, funding, and subsidies to encourage the purchase of zero-emission vehicles
  • Grants and funding for research and development into clean technologies
  • Preferential tax rates for the lowest-emitting vehicles
  • Implementation of new measures to dissuade the use of higher-emission vehicles
  • Zero-emission vehicle quotas for central and local government fleets

More charge points at home, work, and in public areas

The UK Government has also committed to investing in charging infrastructure through the following methods:

  • Grants, funding, and subsidies to support the installation of charging infrastructure
  • Business incentives to provide charge points to employees
  • Smart charge points to become the UK standard so that the grid can cope with the increase in electrification
  • Charge points to be installed as part of new developments via a planning reform.

Low-emission zones

In addition to the Road to Zero strategy, the introduction of Clean Air Zones (CAZ) and Ultra-Low Emission Zones (ULEZ) has been introduced around the country to tackle emissions and congestion in cities. Take a look at our interactive map showing the CAZs, LEZs, ULEZ and ZEZ across the UK.

Incentives, grants and funding for EVs

In addition to the Road to Zero strategy, Clean Air Zones (CAZ) and Ultra-Low Emission Zones (ULEZ) have been introduced around the country to tackle emissions and congestion in cities by encouraging EV use. To further support the uptake of electric vehicles, the government have put in place several great incentives for both businesses and individuals. Look at the schemes below to find out which ones can support your EV journey.

  • Plug-in Van Grant

    This grant will pay up to £2,500 for small vans (< 2.5 tonnes gross vehicle weight) and £5,000 for large vans (2.5-4.25t GVW).

    To be eligible for a grant, the vehicle must:

    • Be below 2,500kg GVW for small vans and under 4,250kg GVW for large van
    • Have CO2 emissions of less than 50g/km
    • Be able to travel at least 96km (60 miles) without any emissions
    Find out more (Opens in new window)

  • EV Chargepoint Grant

    This grant will provide funding of up to 75% towards the cost of installing EV smart chargepoints at homes across the UK.

    For renters or flat owners, you can get 75% off the cost of buying and installing a socket, up to a maximum of £350. The scheme replaced the Electric Vehicle Homecharge Scheme (EVHS) on 1 April 2022.

    You can find out more about the scheme here (Opens in new window), or find out more about Pod Point, our approved home chargepoint point, provider here (Opens in new window).

  • National Insurance

    Employers are required to pay Employer’s National Insurance on employee car’s BIK value; this is currently set at 13.8%.

    National Insurance: As Class 1 National Insurance Contributions (NICs) for company cars are based on official CO2 figures, employers who provide low-emissions electric and plug-in hybrid vehicles to employees pay less NICs. For an electric vehicle where the CO2 is 0, the BIK rate is 2%.

    NIC = P11D value x BIK rate based on CO2 x 13.8%

    Note: It is the responsibility of the employee to pay the BIK tax on their car. 

  • Benefit-in-Kind (BIK)

    The government has announced that the BIK tax on cars will remain at 2% in 2024/25, increasing 1% YoY until 2028. This also applies to some hybrid cars.

    It applies to hybrid vehicles with emissions ranging from 1 to 50 g/km and a pure electric range of over 130 miles.

  • Vehicle Excise Duty (VED)

    Vehicle Excise Duty (VED) is an annual tax paid by owners of vehicles driven or kept on public roads. The tax applies to vehicles in the whole of the UK.

    Vehicle tax bands are based either on engine size, or fuel type and carbon dioxide (CO2 emissions), depending on when the vehicle was first registered. Many electric cars qualify for free road tax, but this will change in 2025 when VED charges will be introduced for the first time for EVs. Vehicle tax rate tables can be found here (Opens in new window).

  • Capital Allowance

    Buying an EV means you’re eligible for 100% first year capital allowances and can deduct the vehicle cost from pre-tax profits.