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Businesses offered tax breaks for electric vans

23 Feb 2012

Businesses are being offered tax incentives to purchase electric vans as part of a Government scheme to reduce carbon emissions.

The first seven vans eligible for the new Plug-in Van Grant were unveiled by the Government earlier this week. They include the Renault Kangoo, the Daimler Mercedes-Benz and the Smith Edison.

Under the scheme, buyers can get 20% off the cost price of a new vehicle, up to a maximum of £8,000.

The grant is open to both business and private buyers, subject to state aid restrictions.

It is hoped the initiative, which is an extension of the Plug-in Grant launched for ordinary domestic cars last year, will boost the uptake of electric vehicles amongst the business community.

‘Our new grant demonstrates that you can be a motorist and still be pro-environment,’ said the Transport Secretary, Justine Greening.

‘The new Plug-in Van Grant – offering up to £8,000 off one of these seven innovative vans – also makes business sense as it’s been estimated that a small electric van will typically cost £100 less in fuel for every thousand miles driven compared to a diesel equivalent.’

Those who use electric vans may also benefit from zero-rate company car tax and capital allowance concessions. Furthermore, those driving in London are exempt from the congestion charge.

However, some critics warn that the limited battery life and high purchase price of electric vehicles will still deter many businesses from going green.

More information on the scheme can be found here: