The Government has cut the electric vehicle grant and changed the eligibility with immediate effect in March 2021.
The “plug-in car grant” has been reduced from £3,000 to £2,500. Moreover, the electric vehicle grant is now limited to cars costing £35,000 or less whilst previously it was available on vehicles costing up to £50,000.
This means that popular vehicles like the Tesla Model 3 and Hyundai Kona Electric 64kWh will no longer be eligible for the grant.
Other tax incentives
Other tax incentives, such as low company car tax rates and Salary Exchange for Company cars, will remain in place.
Our friends at HRUX have highlighted here what are some of the effects of these changes.