The UK government has named seven ultra-low carbon vans that will qualify for a discount of up to £8,000 as part of the ‘Plug-In Van Grant' incentive.

The incentive aims to stimulate the market for ultra-low carbon commercial vehicles as it establishes itself in the UK.

Business Minister Mark Prisk said: "Vans are essential to the smooth running of so many businesses and contribute enormously to the UK economy. An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra low carbon van an attractive choice for those businesses.” Businesses that run electric vans can benefit from reduced refuelling costs, are exempt from the van benefit charge, attract capital allowance concessions, and also receive a 100% discount for the congestion charge in London.

Paul Everitt, SMMT chief executive, said: "The Plug-In Van Grant and today's detail on the seven models eligible is excellent news for van drivers, operators, businesses and the industry. The savings on the initial purchase price, coupled with the tax advantages and very low running costs make a plug-in van an attractive proposition – particularly for those running local and back-to-base services. "Home to a high level of low carbon R&D and manufacturing activity, the UK is well placed to take full advantage of the ultra-low carbon vehicle sector. Incentives that support the development of a flourishing market will add to our competitive advantage."

Already on sale, or arriving this year, each van is eligible for a 20% price reduction up to £8,000 with VAT businesses able to reclaim the full list price VAT on top of the reduction. Vans qualifying for the grant must emit less than 75g/km CO2, be capable of travelling at least 60 miles between charges (10 miles in electric mode for hybrid vans), reaching speeds of more than 50mph and meet European safety standards.

Plug-In Van Grant eligible vehicles

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