Electric car incentives in the UK and Ireland
In recent years, both the UK and Ireland have implemented incentives to make it more favourable to buy and own electric cars. Below, we have have given a brief outline to each of these incentives.
Plug-in grant: you can get a discount of 35% up to a maximum of £1,500 on the purchase price of brand new low-emission vehicles. In order to qualify, the recommended retail price (RRP) of the vehicle must be less than £32,000, including VAT and delivery fees. The grant is provided to the dealership or manufacturer, and will be included in the vehicle's price. To find out more visit the UK government website here.
Vehicle tax exemption: if you own an all-electric vehicle, powered purely by a battery, it will be exempt from paying both first year and standard rate annual vehicle tax (also known as the Vehicle Excise Duty (VED) or "road tax"). Find out more here.
Company car tax: if your employer provides you with an all-electric vehicle, the amount of company car tax, or benefit-in-kind (BiK) rate is just 2% of its list (P11D) price, and it is frozen at this rate until the end of the 2024/25 tax year. You can calculate the tax you might pay here.
SEAI grant: you can receive up to a maximum of €5,000 towards the purchase of a new battery electric vehicle (BEV), with the amount dependent on the list price of the vehicle, capped at a maximum price of €60,000 and a minimum of €14,000. When purchasing a qualifying electric vehicle, the dealer will deduct the grant amount from the total price agreed.
Motor tax: battery electric vehicles (BEVs) qualify for the lowest tax band of motor tax at €120 per annum.
Accelerated Capital Allowance (ACA): for companies, sole traders, and farmers that pay corporation tax in Ireland, the ACA scheme allows for cars coming under the category “Electric and Alternative Fuel Vehicles” to deduct the full cost of the equipment from their profits in the year of purchase. You can find the eligibility criteria and how to apply on the SEAI website here.
Company car tax: if your employer provides you with a battery electric vehicle (BEV) then the benefit-in-kind (BiK) rate is 0% on the first €50,000 of the vehicle value without any mileage conditions. This will be prolonged until 2025, with a gradual decrease in vehicle value.
If you would like to find out more about the financial support you can receive for a company going electric in Ireland, visit the SEAI website here.