Value£3,750 (Band 1) or £1,500 (Band 2) discount per new zero-emission car priced at or under £37,000; applied at point of sale by the dealer — available to business buyers and on leases
DeadlinesLaunched 7/16/2025; funded through FY2028-29, with additional funding announced late 2025 (gov.uk cites a further £1.5bn for the EV switch)
RequirementsBuy or lease a new eligible model (band assessed per model on manufacturer sustainability criteria); no buyer application — seller includes the discount
Caveatsonly models on the DfT eligible-car list qualify and the list changes frequently; band (and thus discount) is model-specific; company cars also benefit separately from low benefit-in-kind rates
Last verified2026-08-24